One Day after Greenspan said Possible Recession!

Greespan spooked the Chinese market and it affected ours! He said there would be a possibility of a recession later in this year. Here's the closing figures for our Stock Market for today:

Dow 12216.24 -416.02 (-3.29%)
Nasdaq 2407.87 -96.65 (-3.86%)
S&P 500 1399.05 -50.32 (-3.47%)
10-Yr Bond 0.451% -0.12

That's quite a scare! 416 points in one day.

Here's more form the AP:

World markets fall after plunge in China
Chinese stocks plunged nearly 9 percent Tuesday, their biggest drop in a decade, rattling markets from Hong Kong to Singapore and as far away as New York amid fears of a slowdown in China's economy.

Investors were also spooked by comments Monday from former Federal Reserve Chairman Alan Greenspan, who said a recession in the U.S. was "possible" later this year.

One day after sending Shanghai's benchmark index to a record, investors dumped stocks to lock in profits amid speculation about a fresh round of austerity measures from Beijing to slow the nation's sizzling economy. The Shanghai Composite Index tumbled 8.8 percent to close at 2.771.79, its largest decline since it fell 8.9 percent on Feb. 18, 1997, at the time of the death of Communist Party elder Deng Xiaoping.

Meanwhile, the price of oil fell on speculation that a slowing Chinese economy would slice into demand for fuel. A barrel of light, sweet crude was down 56 cents $60.83 in premarket trading on the New York Mercantile Exchange.

"The (rumors) that China is going to impose a capital gains tax resulted in regional markets falling," said S. Sharath, an analyst with MIDF-Amanah Investment Bank in Kuala Lumpur, Malaysia, where the benchmark index tumbled 2.8 percent.

But Greenspan's comments also took a heavy toll on Asian markets.

"Our economy is also dependent on the U.S. economy, if there is adverse news, exports from our country is going to drop," Sharath said.

In Hong Kong, the benchmark Hang Seng Index tumbled 1.8 percent, while Singapore's Straits Times index sank 2.3 percent. Markets in Japan and Taiwan, however, registered only modest declines.

The plunge spilled over to New York, where the Dow Jones industrials were down 210 points, or 1.66 percent. In London, the FTSE-100 dropped 2.31 percent, France's CAC 40 dropped 3.02 percent and Germany's DAX lost 2.96 percent.

Major Latin American markets were sharply lower around midday. In Brazil, Sao Paulo's Bovespa index was off 4.1 percent, Mexico City's IPC index shed 3.4 percent, the IPSA index in Santiago, Chile was down 3.8 percent, while in Buenos Aires, Argentina, the Merval dropped 5 percent.

Funny that Bernanke is in charge now but Greenspan seems to be the last word