Dow Jones slumps to 12-year low

The successive loss came as Federal Reserve chairman Ben Bernanke warned if the US authorities do not move aggressively to stimulate the economy there could be a "prolonged episode of economic stagnation." Yesterday the Fed also launched a programme aimed at generating up to $1tn (£712bn) in new lending to consumers and businesses. The Term Asset-Backed Securities Loan Facility (TALF) programme will lend up to $200bn to boost consumer lending for cars, credit cards and education, amongst other things. General Electric (GE) was the biggest drag on the Dow as investors feared further f...