Update [2008-10-6 9:59:18 by Steven D]: DOW Jones Industrial Index down nearly more than 300 400 500 points since the opening bell. [editor’s note, by Steven D] NYSE Trading would be suspended one hour if there is an 1100 point decline in the DJIA before 2:00 pm today under current NYSE rules.
And $600 Billion Dollars of US assets frozen in UK bankruptcy involving Lehman Brothers.
Update [2008-10-6 10:10:33 by Steven D]: Bank of America settles lawsuit for mortgage fraud, agreeing to modify troubled mortgages which were originally generated by Countrywide with $8.4 Billion Dollars in interest and principal reductions for 400,000 customers.
Europe ( and Asia, too) gets the flu from America’s shit pile:
Shares in London and the rest of Europe crashed today in what dealers were calling another “meltdown Monday”.
The FTSE 100 plunged when trading began and had fallen by 6% by mid-morning. By midday it was 271 points lower at 4708.5, off 5.5%, putting the index on track for one of its worst day’s trading ever. There were equally sharp falls in other European markets and in Asia overnight as Europe’s banking sector was rocked over the weekend by a series of crisis talks and amid fears over the stability of Iceland’s economy.
Billions of pounds were wiped off the value of Britain’s banks. HBOS fell 16%, or 32p, to 169p and Royal Bank of Scotland shed 26p to 160p, a 14% fall. Mining firms also fell heavily, with analysts predicting lower demand for metal with many major economies threatened with recession. […]
The German government astonished its fellow European nations – and angered the UK Treasury – last night by unexpectedly announcing that it will guarantee all retail savings deposits. The move is an attempt to prevent an exodus of savers, but it also undermined efforts to develop a single Europe-wide approach to the crisis.
The European leaders agreed a £12bn rescue package for small businesses at their weekend meeting. But Germany’s unilateral approach has disappointed the City. […]
The uncertainty has left investors worried, leading to heavy selling in the world’s stock markets. In Japan the Nikkei fell 4.25% to a four-and-a-half-year low, losing 465.05 points to close at 10473.09. Russia suspended trading on its MICEX index after shares fell by 15%.
I bet this is not what the the traders on Wall Street wanted to hear before the US markets open today. Not in the least:
NEW YORK (AP) — Financial markets around the world had a rocky start Monday after European governments took steps to limit the damage from the growing global financial crisis. U.S. stocks appeared headed for a steep drop at the opening, and the credit markets remained under strain.
Investors are realizing the Bush administration’s $700 billion rescue plan won’t work quickly enough to unfreeze the credit markets, and that many banks are still having difficulties gaining access to cash.
Over the weekend, governments across Europe rushed to prop up failing banks. The German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG, while France’s BNP Paribas agreed to acquire a 75 percent stake in Fortis’s Belgium bank after a government rescue failed. […]
The Federal Reserve also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks’ reserves and will expand its loan program to squeezed banks.
“These programs are going to be effective I believe,” said Rob Lutts, chief investment officer at Cabot Money Management. “Shorter term, we’re in a very challenging environment that’s going to take a while.”
In the meantime, global markets sold off. In Asia, the Nikkei 225 closed 4.25 percent lower. Europe’s stock markets also declined, with the FTSE-100 down 2.72 percent, Germany’s DAX down 5.04 percent, and France’s CAC-40 down 5.501 percent.
So much for that magic bullet known as the $700 Billion Dollar Bailout. Investors are voting with their money, and banks are voting with their refusal to extend credit. The Fed seems more and more irrelevant each passing day. Who in their right mind would want to be President right now? We already know McCain is an unstable personality. Maybe Obama should crank up that old time liberal religion a little bit. Start quoting FDR more in his speeches. Recycle that famous Depression era campaign theme song Happy Days are Here Again. Because going with what the establishment has advised us to do ain’t cutting the mustard, Mr. Obama.
I’d be running ads tying Republicans, McCain and Bush to Herbert Hoover about now if I was the Obama campaign’s chief strategist.
“The fundamental business of the country, that is the production and distribution of commodities, is on a sound and prosperous basis.”2 (October 25, 1929 — the day after the Black Thursday stock market crash.)
“Any lack of confidence in the economic future and the basic strength of business in the United States is simply foolish. Our national capacity for hard work and intelligent cooperation is ample guaranty of the future of the United States.”3 (November 15, 1929.)
“I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover.”4 (May 1, 1930.)
Sound familiar? And I’d be talking up a blue streak about “liberal” values of dignity and jobs and protecting ordinary people, as opposed to the values of Greed and tax cuts for the rich, and “Lobbyists Gone Wild” which have been the staples of the GOP approach to governing this country over the past 30 years. You know, the policies of giving Big Business whatever the hell it wants, including half the Federal Treasury by privatizing government, and the Devil take the hindmost?
But hey, what do I know. I’m only some moonbat liberal fascist with an internet connection.
