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Title: Markets Crash View count: 374 Rating: 5.00 (5 ratings) Description: So much for the 'Bailout" solving everything. Utter pandemonium this week in the marketplace, even John Authers look on his face seems as though he is incredibly bewildered. To give a recap of this weeks volatile movement- 1. Various trading floors were closed (Indonesia, Iceland etc..) due to massive and rapid losses 2. Joint efforts from central banks (typing in billions of digits into the money supply) -Fail 3 Iceland is insolvent, (owes over 100 billion to foreign investors, yet GDP is less then 20 billion) 4. Central european banks halted the sale of gold. 5. And of course the losses that will soon be realized on numerous financial instruments backed by you. If you though you had a bad day, consider yourself lucky, One (link below)investor lost over £1 Billion (UK -Pound) in less then 24 hours this week, (£1= 1.699 Dollars) Taking dates into account, Thursday was the day for Lehmans Credit Default Swaps, and perhaps the most damaging of all was the expiration of a short sale ban on financial stocks on Wednesday night. Here is an excerpt from a Financial times article relating to a "Q&A" regarding the financial mess "Q: So is the government stepping in to do what private investors are not willing to do? A: You have got it in one. It is not just the UK, mind you. The US is putting $700bn up, in effect to invest in banks (although they may do this by buying up duff loans) and has said it will stand behind a wide variety of other borrowings and deposits. European governments are doing or considering similar things. Q: Are you telling me that as a taxpayer, I am bailing out the banking system? Why on earth should I do that? A: Everyone is understandably angry that it should come to this. But while it is fairly easy to put a pricetag on how much it costs to shore up banks, it is much more difficult to put a pricetag on NOT shoring up banks, which could cost much more. Without banks, businesses cannot borrow to meet their payrolls and buy fresh stock. Retailers, for example, will not be able to pay for goods to sell at Christmas and as a result will have to shutter their doors and sack their staff. When their loans come due in January, they will not be able to repay them and banks will take yet more losses." -Today's date 10-10-08 - 1.John Authers in New York, Chris Giles and Krishna Guha in Washington and Neil Hume in London "Market crash shakes world" October 10 2008 19:18 | Last updated: October 10 2008 21:38 www.ft.com http://www.ft.com/cms/s/0/a0eac1e2-96f0-11dd-8cc4-000077b07658.html 2. Roger Blitz, Elizabeth Rigby and Philip Stafford "Tchenguiz loses £1bn in 24 hours in stakes sell-off"October 9 2008 03:00 | Last updated: October 9 2008 03:00 http://www.ft.com/cms/s/0/c0387b30-959b-11dd-aedd-000077b07658.html" www.ft.com 3.JOE BEL BRUNO and MARCY GORDON "Short-sale ban on financial stocks set to expire" October 7, 2008, 5:40PM ET (Associated Press) http://www.businessweek.com/ap/financialnews/D93LTG5O0.htm 4.Norma Cohen and Vanessa Houlder "Q&A: The crisis explained" October 10 2008 23:01 | Last updated: October 10 2008 23:01 www.ft.com http://www.ft.com/cms/s/0/a7f4f83e-970b-11dd-8cc4-000077b07658.html Tags: 24, analysis, authers, ban, bel, bruno, chris, cohen, commentary, crash, elizabeth, giles, gordon, guha, houlder, hours, hume, in, joe, john, krishna, marcy, market, neil, norma, philip, rigby, robert, shakes, short-sale, stafford, tchenguiz, vanessa, world, £1bn, Author: StandardJohnDoe |
