Wall Street Wreck Continues, Dow Plunges 450

Stocks were under pressure again today, even after the $85 billion AIG (NYSE: AIG) bailout, as investors ran for cover in safer investments as the credit crisis intensifies.

The Dow fell 450 points today and shares of the two remaining major investment banks, Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS), fell 24% and 14% respectively, on fears about their business models as short-term borrowing freezes up. In addition, Dow component General Electric (NYSE: GE) fell nearly 7% on fears of losses and problems at is GE Finance unit.

As investors ran for cover, yields on 3-month Treasuries fell to their lowest levels since World War II and gold and silver roared 11% and 14%, respectively.

The ramification of this weekend's Lehman Brothers (NYSE: LEH) bankruptcy are also starting to show up. A huge money market fund, the Reserve Primary Fund, 'broke the buck' after losses on Lehman Brothers debt and reports surfaced that hedge funds which had money with the failed bank were unable to access their capital.

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