Stocks Dive Off the 'Cliff'; Dow Down 7.5%
Stock markets around the world tumbled sharply again last week on growing fears over about $600 billion in federal tax hikes and spending cuts due to take place on Jan. 1.</br></br>The Congressional Budget Office earlier this month warned that without a deal, the so-called fiscal cliff of sharp tax increases and spending cuts could send the U.S. economy back into recession and send unemployment higher again.</br></br>Since touching a 52-week high of 13610 on Oct. 5, the Dow Jones Industrial Average has now tumbled more than 1,000 points, or 7.5%. The Dow fell four out of five days last week, before eking out a gain on Friday.</br></br>Bellwether Apple has plunged by nearly 25%. Investors have stampeded into the havens of Treasury bonds and tax-free municipal bonds, while gold has perked up since the election.</br></br>"People are freaking out," says Larry Glazer, portfolio manager at Mayflower Advisors in Boston.