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U.S. stocks drop sharply and gold reaches a new high following an emergency plan to secure financing for Bear Stearns, as Bush reiterates his confidence in a "resilient economy." U.S. stocks tumbled on Friday (March 14) as an emergency rescue of Bear Stearns orchestrated by the Federal Reserve revived fears about a deepening global credit crunch, triggering a massive sell-off in shares across the board. Stocks plummeted after the New York Fed and JPMorgan Chase stepped in with short-term financing for Bear Stearns, the fifth-largest U.S. investment bank. Before the opening bell, Bear Stearns shocked Wall Street when it said its cash position had unravelled in the past 24 hours. Bear Stearns stock sank as much as 50 percent before closing down 45.9 percent at $30.85 U.S. dollars (USD). Analysts say, even if Bear Stearns can recover, the psychological impact of the Fed's move is likely to be long lasting. "We've seen that in the markets, in terms of increased risk aversion, that we are seeing higher spreads across the board on borrowing. So indeed there are concerns about this issue and the additional potential write-offs that might take place," said Brian Bethune, chief U.S. economist, at Global Insight. The Dow Jones industrial average dropped 194.65 points, or 1.60 percent, to end at 11,951.09. The Standard & Poor's 500 Index shed 27.34 points, or 2.08 percent, to 1,288.14. The Nasdaq Composite Index slipped 51.12 points, or 2.26 percent, to 2,212.49. As the news of...