Issue date: 3/2/07 Section: Local News

Tuesday the Dow Jones Industrial Average shed over 400 points as traders reacted to poor performance of foreign markets. The chain reaction started with traders in China selling their stocks. This was done in reaction to news that the central government was considering imposing a capital gains tax. Here in the United States part of the drop was attributed to a comment by Alan Greenspan, the former Chairman of the Federal Reserve, that a recession was possible towards the end of the year. The current Chairman, Ben Bernanke, commented on Capitol Hill Wednesday that the market slump did not change the forecast from the Federal Reserve. On Wednesday the market began to turn around and head towards previous levels.

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