Dow Dips Below 10,000
By Justin Gardner | Related entries in EconomyIt’s currently below the 9,900, a 4%+ loss.
Why is this happening?
My best guess is it’s because Europe is feeling a big pinch too…
European nations scrambled further Monday to prevent a growing credit crisis from bringing down major banks and alarming savers as Sweden followed Germany, Austria and Denmark in offering new protections for bank deposits.As troubles in financial markets spread around the world, accelerating economic downturns in major economies on three continents, Sweden became the latest European country to offer new protection for bank deposits, after the German government offered blanket guarantees Sunday to all private savings accounts.
Austria and Denmark followed suit later Sunday after the German move, and expectations were high that Alistair Darling, the British chancellor of the Exchequer, would be forced to announce some new measures by the end of the day to calm the turmoil in the London market. Stocks fell sharply in London, Paris and Frankfurt on Monday.
New bailouts were arranged late Sunday for two European companies, Hypo Real Estate, a large German mortgage lender, and Fortis, a large banking and insurance company based in Belgium but active across much of the Continent. Under the agreement, BNP Paribas will acquire the Belgium and Luxembourg banking operations of Fortis for about $20 billion.
And now, since Wall Street seems to be responding very unfavorably to the recuse package, will it even help the situation? There we are with all of this money to buy up the mortgage backed securities and nobody’s willing to use it?
As I feared, it seems it has less to do with banks not needing the capital and more with executives not wanting to accept the “golden parachute” terms. At least that’s the buzz right now.
More as it develops…
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October 6th, 2008 at 11:52 am
Looks like Osama bin Laden’s plan is starting to bear fruit. 911 was intended to bait us into a conflict that would eventually (he hoped) bankrupt us. McCain and company are obsessed with a very narrow view of “victory”, and missing the much bigger and much more significant truth. Bush fell for it. So while McBush obsess over body counts, OBL’s bigger plan is falling right into place.
Why isn’t anyone talking about this except for Gary Shandling on the recent Bill Maher episode?!!
October 6th, 2008 at 12:19 pm
No one in Congress did effective root cause analysis before passing the bailout legislation, nor did they listen to the economists, nor did they listen to the American people. This ridiculously expensive approach is only going to make matters worse. Hopefully we will have become wiser as a nation by 2012.