HAMBANTOTA, SRI LANKA — For years, foreign ships laden with oil, machinery, clothes and other cargo sped past this small town near India as part of the world’s brisk trade with China.
Even before the opening bell, Monday looked ugly.
The credit crisis is no longer just a subprime mortgage problem.
With the Dow Jones industrial average up slightly more than 21 points by the end of trading Monday on the New York Stock Exchange, it may have looked like a calm day on Wall Street.
The stock market fell sharply to its lowest level in nearly a year Tuesday after Citigroup announced a large quarterly loss and an economic report offered more evidence that consumers were cutting back.
Shares tumbled late Tuesday after the head of AT&T suggested that consumers may be cutting back and Countrywide Financial denied that it was tumbling into bankruptcy.
Concerns that problems in the credit market could push the economy into a recession drove investors to the safety of Treasuries on Monday and led to a sell-off of stocks.
The unusually low interest rates of the last three years have been an enormous boon to almost every corner of the U.S. economy.