WALL STREET P.M. 06.22.09:DOW FALLS OVER 200

DJIA: -200.72 CLOSE 8339.01
S&P 500 -28.19 CLOSE 893.04
NASDAQ -61.28 CLOSE 1766.19

STOCKS NOSEDIVE ON GRIM
WORLD ECONOMIC NEWS

CNN MONEY: U.S. markets plummeted across the board as the World Bank released a report saying world economic growth will shrink almost 3 percent. The report was yet another piece of bad economic news at a time when some investors believed an end to the ongoing recession was nigh. . . . READ MORE HERE

WASHINGTON TIMES: Stock prices followed commodity prices downwards as investors reacted poorly to the pessimistic report. . . .READ MORE HERE

UPDATED: NOW 9 DEADIN WASHINGTON, D.C.METRO TRAIN WRECK

UPDATE (11:45 PM EDT):
DEATH TOLL UP TO NINE
Victims include a female train operator.
Second train struck first from behind,
"jackknifed" on top of the leading train.

RESCUE ATTEMPTS ONGOING
NUMBER OF INJURED BETWEEN 70-100

NBC-WASHINGTON: At least four people were killed and dozens injured this evening as two commuter trains collided during the evening rush hour. The collision, said to be the deadliest accident in Metrorail history, occurred on the system's Red Line, in northeast Washington, D.C. between the Fort Totten and Takoma Park stations. . . .[READ MORE]

WTOP: Mayor Adrian Fenty described the accident as "the worst Metro accident in D.C. history." D.C. Fire Chief Dennis Rubin confirmed at least 70 injuries, with 50 in the "walking wounded" category. . . .[READ MORE]

WMATA: This is only the second time in the history of Metrorail that there have been "customer fatalities" and only the third collision between trains. . . .[READ MORE]

MORE COVERAGE: WUSA-TV; WJLA-TV; REUTERS

Update: HotMES is OK, per her FaceBook page.

A.M. MARKET UPDATE 06.22.09:INFLATION FEARS HIT BONDS

THREATENS HOUSING RECOVERY
AP/BOULDER DAILY CAMERA: The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market . . . But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation . . . threatening to make an awful housing market potentially worse . . . READ MORE

RALLY ENDS IN 'JUNE GLOOM';
MARKET EYES FED, EARNINGS
FORBES: Bulls in the broader market suffered from more than just a loss of momentum last week as the first bout of June Gloom finally and officially made its way into the historical ledger . . . Wednesday's Fed Decision will be a closely-watched report . . . Treasury auctions Tuesday through Thursday . . . Fed Chief Bernanke faces questions Thursday from Congress over role in BofA's ( BAC) acquisition of Merrill . . . Earnings reports due Tuesday from Oracle; Wednesday from Monsanto, Bed Bath & Beyond, and Nike; Thursday and Friday, homebuilders Lennar and KB Homes Thursday. . . READ MORE

STOCKS 'HIT THE WALL' LAST WEEK
CNN/MONEY: After three months of rallying, the stock market seems to have hit the wall. Bets that the recession is waning have turned to concerns that growth remains elusive . . . Government reports are due on housing, consumer spending, the labor market and durable goods orders . . . READ MORE

300 WORDS OR LESS: 6.22.09

The U.S. and Iran
Two sovereign countries, with intriguing connections. After WWII, Kennan published the X Article, which birthed the Containment Doctrine. Argue which elements of DIME were the chief drivers of the 1953 coup that installed the Shah in Iran (Operation Ajax) all you like. Robert Naiman says Mosaddeq was a contemporary Saddam Hussein. Wikipedia maintains that Mosaddeq was "democratically elected."
Scroll forward to the 1979 Iranian Revolution.
Ralph R. Reiland said: "The coup, in essence, paved the way for the rise to power of the Ayatollah Ruhollah Khomeini and all the rest that's happened right up to 9/11 and beyond."
BHO in Cairo: "For many years, Iran has defined itself in part by its opposition to my country, and there is indeed a tumultuous history between us. In the middle of the Cold War, the United States played a role in the overthrow of a democratically elected Iranian government."
Scroll back, and read this:

Where once upon a time an American President might have sent Marines to assure the protection of American strategic interests, there is no room for force in this world of progress and self-determination. Force, the President told us at Notre Dame, does not work; that is the lesson he extracted from Vietnam. It offers only "superficial" solutions. Concerning Iran, he said:
"Certainly we have no desire or ability to intrude massive forces into Iran or any other country to determine the outcome of domestic political issues. This is something that we have no intention of ever doing in another country. We've tried this once in Vietnam. It didn't work, as you well know."

This is the formidable Jeane J. Kirkpatrick quoting Jimmy Carter. Between Carter and BHO sits the Iraq intervention. History and U.S. elections seem to have favored Bush over Carter.

--CLS