Stocks hit by news of mounting economic woes

For the week ended January 16, 2009

• Bank of America gets $138B bailout
• Data suggest worsening recession
• U.S. cost of living falls
• Citigroup will split its operations
• JPMorgan’s profits fall 76%
• Central banks in eurozone, Mexico, and Turkey cut rates

Stocks staged a bounce Friday morning after the U.S. government agreed to a $138 billion bailout of Bank of America. However that upbeat news was not enough to reverse the week’s selloff, which was sparked by a steady stream of data signaling and even deeper recession. Read the rest of this entry »