NEW YORK -- After trading in a narrow range earlier Tuesday morning, stocks further extended their losses in afternoon trading, as the Dow closed more than 500 points lower than on Monday, when it dipped below 10,000 points.
The Dow briefly bounced back above the 10,000 mark when the market first opened Tuesday, but then dipped below again around 10 a.m. Get live updates.
Investors are not encouraged by Federal Reserve chairman Ben Bernanke's suggestion that interest rates could be cut, or by the Fed's latest efforts to inject frozen credit markets with some much-needed confidence.
The government is considering new efforts to stop the credit crisis that is threatening the economy.
The Federal Reserve is working with the Treasury Department on the plan to buy "commercial paper," or massive amounts of short-term debts.
Many companies rely on "commercial paper" to finance their day-to-day operations, such as purchasing supplies or making payrolls.
The plan is still being put together.
Former AIG Execs Appear Before Congress
Congress is looking for answers into what went wrong on Wall Street.
Three former American International Group executives went before a House committee Tuesday.
Lawmakers wanted to know how the subprime mortgage debacle spiraled into disaster for AIG.
AIG was rescued by the Fed three weeks ago, with an $85 billion loan.
The men testifying ran the company between 2005 and September 2008.
Former CEO Hank Greenburg, who ran AIG for 40 years, did not appear before the committee.
Sink Discusses Florida's Financial Future
Florida's Chief Financial Officer Alex Sink says the state has to diversify if it wants to survive the economic crisis.
Speaking during the second day of an economic summit, Sink said it can't just be about tourism anymore.
She also said what happens in the rest of the country has a direct effect in Florida.
Sink said the state should consider buying foreclosed homes, and re-selling them as affordable housing.
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