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What a Week: World of Hurt

Stock quotes in this article: MER , GS , JPM , CFC , NEW , LEND , MRK , AIG  

The stock market lost its footing this week, and Goldilocks seemed to fall into a ditch.

After more than seven months of rallying, the U.S. stock market experienced a panic-ridden day -- Tuesday -- not seen since the immediate aftermath of the Sept. 11, 2001, terrorist attacks. The three major indices had their worst week since March 2003.

The main culprit? China's stock market. Its near-130% surge last year was one of the prime examples of investors ramping up leverage to take on more risk. ...

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