Wall Street put the Dow in downtrodden once again Monday morning teetering on the edge of Bear Market Territory. Middle East tensions are being blamed for pushing oil over the 143 dollar a barrel mark Monday morning up more than 3 dollars from Friday's close.
Residents in Chula Vista,California already know they won't see fireworks. The city dropped a bombshell instead 4th of July cancelled for lack of funds.
A bear market is marked by a 20 percent decline. Since October, the Dow has dropped 19.9 percent 10 percent this month alone making it the worst June performance since the Great Depression. But market analysts say it's not all bad.
Mark Zandi, Moody's Economy.Com: "There are a lot of correctives going on. In the energy markets we're seeing more supply come on. People are responding to the higher prices by driving less. The kind of house process is a problem for homeowners, but for first time buyers this is great, housing's going to become more affordable."
Now, if only gas prices would follow suit.
Brian Hanable: "I could maybe do five but once it gets close to six dollars a gallon, it really makes you think a lot."
Investors are thinking about stagflation-increased inflation combined with decreased economic growth.