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FRIDAY • AUGUST 5 • 2011
Dow falls in steepest decline since 2008 By David K. Randall Associated Press Writer
NEW YORK — Gripped by fear of a new recession, Wall Street suffered its worst day Thursday since the financial crisis in the fall of 2008. The firestorm of selling that erased more than 500 points off the Dow Jones industrial average then spread overseas.
The sell-off wiped out the Dow’s remaining gains for 2011. It put the Dow and broader stock indexes into what investors call a correction — down 10 percent from their highs in the spring. In today’s trading in Asia, Japan’s benchmark Nikkei 225 stock average was down more than 3 percent and Hong Kong’s Hang Seng shed 4 percent.
SRS office closures under new scrutiny
“We are continuing to be bombarded by worries about the global economy,” said Bill Stone, the chief investment strategist for PNC Financial. Across the financial markets, the day was reminiscent of the wild swings that defined the financial crisis in September and October three years ago. Gold prices briefly hit a record high. Oil fell even more
than stocks — 6 percent, or $5.30 a barrel. And frightened investors were so desperate to get into some government bonds that they were willing accept almost no return on their money. It was the most alarming day yet in the almost uninterrupted selling that has swept Wall Street for two weeks. The Dow has lost more than 1,300 points, or 10.5 percent. By one
broad measure kept by Dow Jones, almost $1.9 trillion in market value has disappeared. For the day, the Dow closed down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008. Thursday’s decline was the ninth-worst by points for the Dow. Please see ECONOMY, page 2A
A fair to remember
By Scott Rothschild srothschild@ljworld.com
TOPEKA — A key legislator on Thursday rejected the justification used by the Kansas Department of Social and Rehabilitation Services to shut down the Lawrence agency office and eight others. And a legislative committee has asked for information from SRS related to the closures. SRS Secretary Robert Siedlecki Jr. has said the closures are necessary because of a legislative mandate included in the state appropriations bill that the agency find $1 million in administrative cuts. But Senate Ways and Means Committee Chair Carolyn McGinn, R-Sedgwick, said that was not the case. “The cuts were supposed to be at the administration level in Topeka and not be dispersed to local offices,” said McGinn, who Please see SRS, page 2A
Haskell president confident in school unity
Mike Yoder/Journal-World Photos
FAIR ATTENDEES, FROM LEFT, JORDAN SEIGER, 16; SHAELYN MARR, 14; and Tyler Ellison and Courtney Curtis, both 16, all of Lawrence, enjoy an evening beneath the carnival lights at Moores’ Greater Shows Carnival on Thursday night at the Douglas County Fairgrounds, 2110 Harper St.
By Andy Hyland ahyland@ljworld.com
ONLINE: See the video at LJWorld.com
The new president of Haskell Indian Nations University said he wants to move on from challenges Haskell has faced in the past few years and focus on expanding opportunities for the university’s students. Chris Redman, who has Haskell been on campus since July University 6, is familiar with some of the difficulties the school has faced from dissension within the faculty ranks to inquiries from federal elected officials, including Sen. Pat Roberts, R-Kan., about the school’s leadership. “I think it’s more the exception now than the rule,” he said of dissension at Haskell. “I’m very persistent about employees learning how to reach across those issues and being willing to disagree with each other and get the job done.” Please see HASKELL, page 2A
ABOVE, SCOUT MEYERS, 8, LAWRENCE, won Reserve Grand Champion at the Douglas County Fair for her painting of fish. Scout was also selected Level 1 visual art champion. It was her first year as a participant at the fair. AT RIGHT, Rose Rulifson, 4, Shawnee, feeds goats with her grandmother Laurel Lewis, Lone Star, at the Douglas County Fair’s Petting Zoo on Thursday.
ONLINE: See videos from the Douglas County Fair at LJWorld.com
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Vol.153/No.217 32 pages
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