What they're saying: Dow, global markets plunge

The Dow industrials plunged below 10,000 for the first time in nearly four years after the $700 billion bailout package and government interventions in Europe failed to settle nervousness in global markets. Here's some reaction from market observers and experts.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research: "This is a psychologically important moment that we passed below the 10,000 level. But, the issues are worldwide. The fact is people are scared and the only thing they're doing is selling."

Jeff Saut, managing director at Raymond James: "We better bottom today or tomorrow, or we're into a crash…Odds are near 100% we're going into a recession now…I'm getting calls from brokers who are getting calls from the public, who's saying sell everything," adding that when the market experiences the kind of negativity seen today, it's typically near a low.

Goldman Sachs economist Jan Hatzius: "[W]ith the boost from fiscal stimulus gone and the impact of tighter credit conditions working its way into the real economy, US economic activity has decelerated sharply in recent weeks." Problems in financial markets "further darkens the outlook….The recession that we have been forecasting now looks likely to be deeper and longer, taking the unemployment rate to 8% by late 2009 and pushing the Fed to cut interest rates to 1% or lower."

Owen Fitzpatrick, head of U.S. equity at Deutsche Bank: "Psychologically, it does play a role. But investors are not concentrating on this. The big worry of the moment remains liquidity and the economy."

Bill Fleckenstein, hedge fund manager at Fleckenstein Capital Management: "What's different today is the bailout package came and went, and it's not going to solve the problem."

Alan Fein writing in AXcess News: "While stocks in New York reacted to the global market selloff this morning, the shakeout on Wall Street could be a silver lining in consumer deflation and just the spark needed to spur the U.S. economy ahead of the fourth-quarter holiday shopping period in which retailers plan much of the year's budget."

President Bush, urging patience: "It's going to take a while to restore confidence in the financial system."