Dow Jones plunges to 12-year low

The Dow Jones average hit a 12-year low of below 7,000 today as investors grew increasingly pessimistic about the health of banks, and in turn the world economy.

The US index had not traded below 7,000 since October 28, 1997, and last closed below that mark on May 2 of that year. The credit crisis and recession have now slashed half the average’s value since it hit a record high over 14,000 in October 2007.