Stocks pare losses a bit - but Dow still down sharply

Truly a horrible day, though not all that volatile after the big initial losses. The Dow closed down 419 points, to 10,991. All the usual suspects were cited for the drop - European debt woes, big drop in manufacturing, worries about jobs, worries about housing, an incoherent fiscal policy, etc. But it's the fear factor that's been the real killer on Wall Street. For what it's worth, the president of the Federal Reserve Bank of NY said that the risk of recession was still quite low, though he added that "obviously, there is some concern." From Reuters:

"The risk of a recession is somewhat higher than it was six months ago. That said, I think the risk of a recession is still quite low," William Dudley, the president of the Federal Reserve Bank of New York, told New Jersey business leaders. Dudley said that only some of the restraints on growth, such as high oil prices and Japan's earthquake in the first half of the year, can be considered temporary.