U.S. Stocks Fall as Investors Flee Equities; Countrywide Drops (Eric Martin)

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U.S. stocks fell this morning, worsening a global slump in equities, as investors turned away from the riskiest assets and moved into the perceived safety of government debt.

By Eric Martin

March 1 (Bloomberg) -- U.S. stocks fell, worsening a global slump in equities, as investors turned away from the riskiest assets and moved into the perceived safety of government debt.

``This is fast and serious,'' said Brian Barish, who oversees $9 billion at Cambiar Investors LLC in Denver. ``That prices are suddenly moving violently and rapidly, it can cause people who didn't think they were overexposed to become overexposed.''

Slowing profit and economic growth has raised the specter of a recession, while lenders are reporting increased bad home loans as housing prices falter and interest rates rise. Treasuries gained and the dollar dropped. Some analysts said the yen's rally to an 11-week high also spurred selling in U.S. shares this week.

Countrywide Financial Corp., the nation's biggest mortgage lender, led financial companies lower after saying its delinquent loans rose. General Motors Corp., the largest automaker, and Home Depot Inc., the biggest home-improvement retailer, both declined for an 11th straight day.

The Standard & Poor's 500 Index lost 6.71, or 0.5 percent, to 1400.11 as of 10:30 a.m. in New York. The Dow Jones Industrial Average slid 57.04, or 0.5 percent, to 12,211.59. The Nasdaq Composite Index decreased 18.57, or 0.8 percent, to 2397.58.