Transcript for Stocks Tumble as Fed Takes Off Economy's 'Training Wheels'
We're going to turn to wall street. Walloped for a second-straight day. The dow diving more than 350 points on thursday. Its worst day of the year. And abc's rebecca jarvis is downtown at the new york stock exchange right now, to tell us more about what it means for our money right now. Ning to you, rebecca. Reporter: Hi, josh. Good morning to you. We're looking at another wild ride for the stock market today. But what may be most surprising about all of the volatility, the market dropping, is it's happening because of what's supposed to be good news. The 350-point plunge comes just as the government says the economy is getting better. Everything from housing to jobs, to consumer spending, all showing improvement. So, why would wall street run scared from such good news? Experts say, it's all because fed chair ben bernanke, basically, our country's banker in chief, now wants to take the training wheels off our economy. Saying because things are looking up, it's time to dial back on trillion lgs of dollars the fed's been pouring into the markets. We've had training wheels on for quite some time now. And now, we're getting word that they're going to have to come off slowly. And we have to see if we can ride this bike on our own. Reporter: But riding without that help means the cost of borrowing money to do everything from buying a house to starting a business is going up. And that spooks the stock market. And staying on that training wheels theme, traders here on wall street aren't afraid we're going to crash into a wall when the wheels come off. What they're concerned about is things could get wobbly. That creates uncertainty. And uncertainty means volatility in the stock market. When you consider all of this together, what does it mean for your retirement savings? YOUR 401(k) OR I.R.A. STILL FOR This year is up about 10%. Not so bad. That's good news. Thank you, rebecca.
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