“It’s a panic situation, everyone is looking at the international financial situation and coming to the conclusion that the only safe position is cash.” — Brazilian Economist Flavio Serrano
The “rescue” appears to be rescuing the intended few at your expense.
October 07, 2008 – 3 min 10 sec
Worldwide financial fiasco
Markets around the world hammered by credit crunch as governments move to secure bank deposits
Markets were thrashed again on Monday, as the US credit crisis spreads worldwide.
The Dow Jones lost another 370 points and closing at under 10,000 for the first time since October 2004. At one point the Dow was down 800 pts. But managed to recoup half.
The day started with reaction to sharp declines in Asian and European markets. Tokyo’s Nikkei index fell to its lowest level in four and a half years, sinking 4.25 percent. Hong Kong’s Hang Seng index lost 4.3 percent.
Markets in China, Australia, South Korea, India, Singapore and Thailand also fell sharply. In Europe the trading was halted twice in Russia with the market closing down 19.1 percent, the DAX in Frankfurt, Germany was down 7.1 percent, while the FTSE 100 index in the UK was down 7.9 percent.
Stocks in Paris took a big hit losing 9 percent. Across the Atlantic Brazil lost 5.5 percent; Argentina was off 5.9 percent, while Mexico’s index fell 5.4 percent, In Canada the TSX was down 5.3 percent.
Faltering confidence in the financial system following a series of bank bailouts forced many European governments to offer deposit guarantees.
Expectations are that the US Federal Reserve, the European Central Bank will have a coordinated interest rate cut as early as Monday, the first joint action since the September 11, 2001, attacks on the US.