Global financial markets tumbled yesterday as investors worry over the worsening government-debt crisis in Europe. In addition, Captiol Hill’s questioning of Goldman Sachs Group Inc. executives on their role in the housing-market meltdown has also caused a large undercut on Wall Street.

According to the LA Times, ” U.S. stocks, which Friday had hit 19-month highs, suffered their biggest sell-off since early February. The Dow Jones industrial average slumped 213.04 points, or 1.9%, to 10,991.99, falling below 11,000 for the first time in two weeks.”  In addition, Wall Street’s slide followed heavy selling in European stock markets and a decline in the euro curreny’s value. The Greek government last week requested a $60-billion bailout from the rest of Europe and the International Monetary Fund. Jeffrey Saut, chief investment strategist at brokerage Raymond James & Associates said, ” For the U.S. stock market, Europe’s woes provided a good excuse for some investors to take profits after the powerful rally since early February.” However, he thinks the market could fall between 5% and 10% from Friday’s 19-month highs, but expects the U.S. economy to stay on a recovery path. What do you think?