August 3, 2007 (LPAC)--Although any sane individual knows the lying and speculation of the stock market reflects nothing remotely close to reality, today will mark the worst three-week collapse on the stock markets since 2003.

Credit markets are freezing up around the world, foreclosures keep soaring in the U.S., and yet Congress insists on ignoring reality while the system is coming down!

The three stock markets all finished down today. The S&P 500 erased its gains for the week closing 2.7% down or falling 39.14 points in a day -- its worst day since Feb. 27. The Dow Jones fell 281.42 points, or 2.1% down, while the Nasdaq index tanked 64.73 points, a 2.5% loss.Bloomberg} characterized the activity as "exacerbat[ing] a route last week that wiped out $2.1 trillion in value from global equity markets."

A big driver for today's stock losses was Standard & Poor's announcement that it lowered Bear Stearns' credit-rating to negative. The rating agency said the move was due to concern over the fall in mortgage-back securities prices which would lower the hedge funds' earnings. Bear Stearns' CFO Samuel Molinaro quipped, "I've been out here for 22 years, and this is as bad as I've seen it..." The company's shares fell another 6% today, bringing its yearly stock price decline to 33%.

Finally, another indicator of the rate of collapse was evidenced by Sowood Capital Management LP's announcement today that the hedge fund had lost 60% of its assets in one month. Sowood had reported having $3 billion in assets as of June 30. But today, Jeff Larson the fund's founder, a former hot-shot star trader for Harvard's endowment, told investors there remains only $1.4 billion which he intends to return to them.

As the speed of economic blowout accelerating, it were wise for Congress to act before Americans are on bread lines.

Party Leaders are you now ready for LaRouche's Economic Recovery Platform?