Stock Market falls due to AIG collapse.

[moneysense]

The Stock Market fell to below 7,000 and Standard and Poors Stock Index fell below 700. This is the lowest since 1997.

Investors are worried now that AIG has had a $62 billion dollar loss in the 4q. The stability of the financial system has become a big worry to a lot of investors.

The $30B that will be available to AIG will be the fourth such help that the company has been given by the government since last September.

Will the stock market recover, not without signs of the health of financial companies. And those signs are not present at this time.

Investors are too worried about buyers not returning any time soon. And with the stock market being in the shape it is in right now, buyers will be stand offish for quite a while to come. At least that is my opinion.