Sep. 16, 2008.
LONDON (Reuters) - Investors dumped equities and oil as the financial meltdown spread on Tuesday, a day after Lehman Brothers collapsed, driving the yen and government bonds higher and unleashing a panic rush to secure short-term cash.
A day after Lehman filed for bankruptcy protection and Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) agreed to buy Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), concerns about the global financial system deepened as fears grew American International Group (AIG.N: Quote, Profile, Research, Stock Buzz) could be the next financial giant to tumble.
Third-quarter earnings results from Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) and an interest rate decision from the Federal Reserve top the day’s agenda with a panic scramble in the interbank money market threatening to trigger a fresh liquidity crunch.
The cost of borrowing dollars overnight rose to 10 percent five times the benchmark Fed rate of 2 percent. Interest rate futures were pricing in a more than 90 percent chance the Fed would cut rates to 1.75 percent later.
Asian and European central banks flooded money markets with cash as they sought to prevent the upheaval on Wall Street from clogging the pipes of the global financial system.
“There’s a smell of cordite in the air. It’s like the day after the explosion. People are still extremely nervous. They’re wondering what happens next,” said Justin Urquhart Stewart, investment director at Seven Investment Management.
“Investors are looking at what other companies have weak balance sheets. Now we need a bit of leadership from the central banks and the regulators.”
The MSCI main world equity index fell 1.2 percent, its lowest since June 2006, on top of a 3.6 percent tumble on Monday.
Source:
http://www.reuters.com/article/hotStocksNews/idUSN1244441420080916
TOMAS
Comments
The world is sick.
America is sick.
1) What is the annual salary of President of America?
2) What is the annual salary of benefits of a CEO ?
If you are sick of what the greedy CEOs are earning , please post it here.
Even a dumb CEO got kick out of the company will get millions of dollars/shares etc.
Sick of it.
To be a President of a country, you are getting paid less than 10% of a CEO is getting.
Reminder.
Every country must change this “greedy CEO” salary .
Make them pay they should have had the brains not to loan the people that money. Would you give a loan to a drug dealer? People need to use their heads oviously greed ate up these people’s brain cells.
Exactly! Look Bush stated today that Americans are going to have to Pay BILLIONS IN TAXES for a financial crisis that isn’t even our fault! Why doesn’t he PAY! Just watch, as our country just sits here, Russia, Iran, North Korea, Cuba, Venezuela, and China are going to come after us!! it will be the ultimate revenge! because of our leaders’ stupidity
My family is Cuban… I just might have to call them so they can inform Castro.. that’s actually a brilliant Idea!
The Bushes will, no doubt, fly over Cuba to their private 100,000 acre compound in Paraguay to escape justice. Castro would be a world hero if he ordered the plane carrying the Bush Crime Family shot down while in Cuban airspace! He would be assassinated by the CIA but that would make him a martyr of the highest order. Cuba would be enshrined by the world for that grand act of justice.
China would still be a Maoist hell-hole if it weren’t for Kissinger setting up the wholesale movement of American factories and wealth to the Far East. Corporate greed for quasi-slave labor and Gordon Gekko’s predatory capitalism built up China and destroyed America. The Bush Billionaires ought to be flayed alive and their ill-gotten gain seized as part of a grand reparations to the American People.
Maybe this country and other countries need to learn what the hell CHINA is doing. Why is it that when the USA “fucks” up, other countries capitalize off the mistake?
I know. You’d think the financial veterans would survive. I’d like to learn more about the roots of this housing mess, and why my future is going down with it.
I agree. I have predicted this for some time now. Bush is setting up the dominos to fall and it will be blamed on Obama, while Bush is long gone from the public eye and bathing in riches.
If you don’t want to be Depressed! If you don’t want to spend $5 a gallon for gas to get to work! Subscribe to my channel and get a New Course! One that will allow you to take more control over your own destiny!
I gathered something from that report. We are going to be in even more trouble if China started consuming their own goods they produce and their citizens (the largest potential consumer base in the world) get accustomed to it. Since the US economy is 70% consumption, less goods available for us would mean greater and greater economic woes.
I like where you going, but I think the bottom will really fall out (of the dollar) in the next 6-12 months and it will be pinned on Obama. Simple minded media people will set our country back hundreds of years for pinning the “greater depression” on the first minority president, when it was nothing of his doing.
You are misguided. Obama’s economic policies are not much different, and not any better, than those of McCain’s or any republicans.
Obama is using the line “This is proof the current administration needs to end, so vote for me” while he does offer any real or different solutions. He is suckering everyone in.
Vote for Ron Paul, not Obama. Ron predicted this would happen. His views clearly state why this is happening, while Obama wants to finish the war.. you know, the same one that’s partly behind this fucking mess.
Yeah, well the funny thing is that Lindsey Williams, Ron Paul, and numerous other figures (including myself actually in Aug) predicted this was going to happen by Sept. I think it has a lot to do with the elections. The economy will crash, and will boom again with the new president. Then people will praise him, saying he got us out of the collapse. Little do they know, the collapse is very carefully planned by the elite… who pretty much decide who the next president will be. US: corruption.
Continuation of the Bush policies (republican ideas) will result in Arabic investors to turn to China and Russia. If you think that is good for the US, vote for the 72 year old experienced candidate and his 44 years old incapable hockey-mum.
If you really care for your country and the world, vote for Obama/Biden. Let them clear try to the Bush-mess and a deficit of 500B. Not a job you or I want I think.
That is why this is already called ‘The Greater Depression’.
This was a shock to me, to say the least. This company was founded in 1850 (if remembered correctly), and has survived The Great Depression.
