Business News
Stocks round the globe plunge amid bail-out doubts
By Deutsche Presse-Agentur Oct 6, 2008, 15:46 GMT
A broker gestures facing his screens at the Frankfurt Stock exchange, Germany, 06 October 2008. The financial crisis has once more caused a worldwide downward trend this morning. EPA/FRANK RUMPENHORST
Stock markets around the world plunged Monday as investors worried that government bail-outs for sick banks were failing to cure a crisis that threatens to infect global trade and industry too.
In early trading in New York, the Dow Jones Index was off 3.2 per cent, slipping below 10,000 for the first time in four years.
London's FTSE 100 was off 6.8 per cent at 4641 and Germany's DAX lost 5.1 per cent to 5503 in a new Black Monday.
The Nikkei 225 Stock Average fell by 4.25 per cent to 10,473, with Tokyo stocks at their lowest in five years.
The spread of the banking crisis to Europe despite the US Congress' approval of a 700-billion-dollar bail-out for Wall Street has underlined sentiment that governments may not be able to cope.
Germany had to forge a fresh bail-out Sunday for a lender, Hypo Real Estate, after a first rescue a week ago proved inadequate. Berlin soothed savers with a guarantee for personal deposits.
Hypo Real Estate stock was off 36.0 per cent, the day's worst performer among the Frankfurt Stock Exchange top 30 stocks.
A German broker put his finger of the most painful worry: that more banks were on verge of default.
'Everyone is wondering who else has got a skeleton in the cupboard,' he said in Frankfurt. Fears that commerce and industry might run short of credit, and general fears of global recession did the rest.
By mid-afternoon, the Paris Bourse's benchmark CAC 40 was down 7.5 per cent, to 3,757, its lowest reading of the year.
Trading on Russia's two leading stock markets was twice halted on Monday as stocks plunged to three-year lows amid the deepening woes on the European markets and a dive in oil prices.
By the time of the second suspension, Russia's ruble-denominated MICEX had dropped 16.7 per cent to 757.44.
Facing the worst financial crisis since the national default in 1998, the Finance Ministry earlier earmarked over 150 billion dollars in loans primarily to bolster liquidity in the financial sector.
Shares on China's main stock market lost more than 5 per cent of their value on Monday, dragged down by banking stocks, on the first day of trading after the one-week National Day holiday.
India's benchmark Sensex stock index plunged by nearly 6 per cent on capital outflows by foreign funds, while the Seoul Stock Exchange Kospi index had slumped 4.3 per cent at close.
In Australia, the ASX 200 gave up 3.3 per cent.
After the grim day of trading in Asia and Europe, the Americas took up the tune when their financial markets opened.
In Sao Paulo, panic selling on South America's largest stock exchange prompted authorities to suspend trading only 18 minutes after the session opened. In that time, the Bovespa index had plunged 10.5 per cent to 39,824. After a half-hour cooling period, trading resumed - only to be suspended a second time after the index had lost almost 15.1 per cent
Throughout the day, it was banking stocks which took the biggest battering, especially in Europe.
In London, the Financial Times Index plunged by 6.6 per cent to 4651 by mid-afternoon, the lowest in four years, as Britain digested the news from Germany of a wholesale guarantee on private savings.
Shares in mortgage lender Halifax Bank of Scotland (HBOS) plunged by 15 per cent, reflecting ongoing unease about the takeover deal sealed with Lloyds TSB 10 days ago.
The German move, followed by Denmark, has intensified pressure on Britain to increase its protection for savings despite the huge burder that could turn out to be for the nation's government.
At midday, Spain's main Ibex-35 index had gone down 4.9 per cent to 10,864, with bank shares sustaining heavy losses.
Giants Banco Bilbao Vizcaya Argentaria (BBVA) and Santander plunged 5.1 and 4.8 per cent respectively.
On the Milan bourse, share prices slumped in early trading with the benchmark S&P/Mib index falling 5.8 per cent to 24,417.
Leading the plunge was Italy's biggest bank by assets, UniCredit, which lost 12.8 per cent in value despite its announcement Sunday that it plans to boost capital by as much as 6.6 billion euros (9 billion dollars) - a move to reassure investors about its finances.
On the Amsterdam Stock Exchange, the AEX index was off 7.0 per cent at mid-afternoon at 319.89. Dutch insurer Aegon was notably hit by the loss of confidence, dropping 21.6 per cent.
In Stockholm, the Swedish bourse continued its slide, with prices down 6.9 per cent. Again it was a bank, Swedbank, which suffered most, shedding some 11 per cent.
The Arab world's largest bourse, the Saudi stock exchange, resumed trading on Monday after the Eid al-Fitr Islamic holiday and its Tadawul All Share Index (TASI) suffered a 9.8-per-cent drop.
The plunge reflected concerns among investors in the region that the financial crisis could drag on, particularly if the US bail-out package failed to achieve its objectives, financial analysts said.
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Older Talkback
page: 1
how dare you say that about our president prick c--k sucker hitler bastard of Geo h. and Barbara bush
'how dare you say that about our president prick c--k sucker hitler bastard of Geo h. and Barbara bush'
Thank you.
It is my job to 'speak the unspoken truth', because most people do not have the balls to do it themselves.
It is SP4's (and those like him) job to try to get me to shut up and thus keep the truth unspoken. They do it because they are afraid of their own shadow (Bush included).
we shut up for no one including the stoop sp4.
or that Smiley D a-hole will label you as creepy stalkers of SP4. We all know what an onerous tag that is, don't we.
Bye bye American pie. Byeeeee.......
is the the $700B Bailout has not had any effect and things are getting worse.
Precisely - having let America live on massive credit (while spending billions on overseas invasions) this administration has now lost all control of the situation, and this American disease is now affecting the rest of the World (as with so many other American cock-ups)
The head of failed US investment bank Lehman Brothers has told Congress that he took home about $300m in compensation over the past eight years.
Turning to Mr Fuld, Mr Waxman asked whether it was true he had received $480m (£276.2m) in pay and bonuses since 2000 - and whether this figure was fair.
Mr Fuld replied that the correct total was about $300m (£172.6m).
Mr Waxman also criticised Mr Fuld for requesting multi-million dollar bonuses for departing executives just days before last month's collapse.
'In other words,' he added, 'even as Mr Fuld was pleading with [Treasure] Secretary [Henry] Paulson for a federal rescue, Lehman continued to squander millions on executive compensation.'
'The economy is schtrong.' Damn these false teeth. They keep getting loose.
Bush's mouth is full of false teeth and falsehoods.
Sorry for the cut and paste, but there is no way to improve on the wording.
Chief among those to whom responsibility attaches for the financial crisis that is plunging the nation into recession is former Texas senator Phil Gramm, McCain's own economic guru.
Gramm was always Wall Street's man in the Senate. As chairman of the Senate Banking Committee during the Clinton administration, he consistently underfunded the Securities and Exchange Commission and kept it from stopping accounting firms from auditing corporations with which they had conflicts of interest. Gramm's piece de resistance came on Dec. 15, 2000, when he slipped into an omnibus spending bill a provision called the Commodity Futures Modernization Act (CFMA), which prohibited any governmental regulation of credit default swaps, those insurance policies covering losses on securities in the event they went belly up. As the housing bubble ballooned, the face value of those swaps rose to a tidy $62 trillion. And as the housing bubble burst, those swaps became a massive pile of worthless paper, because no government agency had required the banks to set aside money to back them up.
The CFMA also prohibited government regulation of the energy-trading market, which enabled Enron to nearly bankrupt the state of California before bankrupting itself.
Gramm and McCain do have an enduring political and economic alliance. McCain chaired Gramm's short-lived presidential campaign in 1996; Gramm is co-chair of McCain's current effort. McCain has not repudiated reports that Gramm is on the shortlist to become Treasury secretary if McCain is elected, even after Gramm labeled America 'a nation of whiners.'
...Citigroup gets mega bucks for a buyout that could have been done privately?
How much of this could have been done without government help?
Never mind - that intellectual giant Palin will doubtless have all the answers, and will be able to prevent SP4 having to admit America is in recession
regarding: 'so much Bull.'
You are absolutely WRONG, again. It is a Bear market. We had the Bull and now we are dealing with it's sh*t. A lot of sh*t. But we couldn't expect anything else from you, could we, except more Bullsh*t. The GOP is a party of whiners. It is always someone else's fault.
The greed has gobe further than you can imagine as Lehman brothers hoarded 2.5 billion dollars away to pay a bonus for it's NYC executuives .A staggering amount of money indeed:
www.nypost.com/seven/09212008/news/regionalnews/execs_crash__earn_13009 9.htm
There is an old saying: If you play with the bull, sometimes you get the horn.
Right now everybody is getting the horn. Right up the wazoo.
EssPee must really be enjoying this, after all, he is the 'man' who stated: 'f*ck me up the ass and call it dinner.' I bet he isn't the only 'man' enjoying this. The GOP is chock-full of toe-tappers.
Banking of America announced worse-than-expected earnings more than a week in advance;they also cut dividend in half and announced a $10B stock sale.
like any of you have any money in the market.
'Chief among those to whom responsibility attaches for the financial crisis that is plunging the nation into recession is former Texas senator Phil Gramm, '
That is the biggest load of nonsense posted here yet. And that is truly saying something.
The Main reason we are in an economic crisis is that the housing bubble has burst and it is taking down the lenders who gave mortgages to people who could not afford to borrow what they were allowed to borrow. These mortages were often sold to Fannie and Freddie/ Quasi private institutions who had public backing. The CEO's oand overseers of Fannie and Freddie were experts at buying off politicians in order to avoid regulation.
Obama took more money from Freddie and fannie than any other senator in such a short period of time. The only reason Chris Dodd was able to wring out more is because he was in the senate over 10 years. Here:
www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html
All Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008
Name, Office, State, Party, Grand Total, Total from PACs, Total from Individuals
Dodd, Christopher J S CT D $165,400 $48,500 $116,900
Obama, Barack S IL D $126,349 $6,000 $120,349
Obama was the number 1 recipient of money from the failed countrywide mortgage lender.
This entire bailout/Crisis was caused by Freddie and fanny deliberately buying loans that were marginal from banks that deliberately loaned to people who were not qualified to borrow. Jim Johnson and Franklin Raines were CEOs of Freddie and Fannie and both walked away from the mess they made with tens of millions in undeserved bonuses and BOTH are not only contributers to Obama but both are key political and economic advisers to him and his campaign. Jim Johnson oversaw the Obama vice presidential search committee.
Penny Pritzker is Obamas campaign finance chairman, she made millions in the sub-prime crisis. Add Jamie Gorelick who is one of the Fannie executives who benefited from inflated bonuses based on Enron-style accounting and another Obama adviser and you pretty much have most of the major people involved in buying off politicians in order to limit Fannie/Freddies accountability giving money and advice to Obama.
Barack Obama is continuing a long history of helping other people steal from the tax payer in exchange for financial contributions and power. He did it with tony Rezko in Chicago who stole millions from the taxpayers took care of him well.. Now he is doing it with the CEOs of these failed banks who have bought and paid for him with OUR money in order to stop the regulatory bodies from stopping them from stealing.
Take a look at a video of a series of democrats actually stopping regulation that would have stopped this mess:
www.youtube.com/watch?v=_MGT_cSi7Rs
Take a look at that video and it will make sense.
www.youtube.com/watch?v=1RZVw3no2A4
Ah, yes, the 'real' information as distributed by the GOP(Graft Obfuscation Perfidy). More crap from the backroom toilet bowl. The GOP is always looking for someone else to blame for their sins.
GOP = a party of whiners.
...the long view.
What would you know about the long view. Your vision is myopically clouded by a fog of drug smoke.
We've read your mindless, uneducated dribble about 'Bush's Economic Juggernaut Just Keeps Working' for far too long.
And you think you're capable of giving any credible economic advice?
You were an idiot then ... and you're still an idiot today.
You'll see soon enough ... There are BIG ... VERY BIG things waiting to rise to the surface after this 'mortgage crisis bailout' - (i.e. credit default swaps to the tune of 62 trillion)
Hang on Virginia ... the rides just getting started.
SP4, you should do your self-respect a favor and take a hike (because yes, you were/are wrong)
Ah, yes, the 'real' information as distributed by the GOP(Graft Obfuscation Perfidy). '
Not a rebuttal to anything I wrote, yet again.
If you want a re-Butt-al, bend over in front of EssPee. If you are desirous of a reply to anything you post, bend over, EssPee will gladly fill you in.
(_*_)
The logo of the GOP.
LOLOLOLOLOLOLOLOLOLOLOLOLOL
When you post something that intelligently expresses your own thoughts, in your own words, then and only then will you get a rebuttal, if a rebutt is deemed necessary. As long as you continue to post the spam that you have posted so many times in the past, then you will get no rebuttal. So, suck that up, b*tch.
Pure comedy.
Must you answer everything 3 times with progressively stupider effluence?
You must be the Smiley D a-hole. No one else that I know of can take 3 separate posts, by three separate people and assume that one person did them all. So, WRONG, AGAIN, dickweed. Or should I say WRONG, STILL. Go join your buddy EssPee and smoke your brains out with that Paraquat soaked Mexican brickweed. Or is that why you're so stupid, you've done it already. As to your absolutely lame rebuttal, if that is the best that a GOP stooge can do, then Obama has no worries.
Stupider is not a word in the English language. The superlative you should be using is more stupid. But then a stupid GOP stooge can't be expected to be literate. Idiot. Moron. Cretin. It is amazing that your brain produces enough electricity to allow you to breathe.
Ha! ... We wish you would.
I posted the 'I'm not gonna rebutt', rebuttal post ... and NO, I'm not the guy who's butt graphic, you were re-butt-ing. (pun intended)
I found your comment funny because you were doing exactly what you said you weren't gonna do.
So, I wrote my post.
Ha! ... Yeah, I can see why you are such an ardent GOP supporter ...
I'm guessin' here ... but it's probably a safe bet to say that you think professional wrestling is for real too?
Does this sound as a statement from somebody that saw this financial crisis coming ?QUOTE Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.”UNQUOTE.
No in my vision,one try to interpret the statement in as mant ways possible but they are nothing more than stating that the deregulation of the financial market was a good thing,and that the same principles must be applied to health care.This statement if from John McCain.It was written under his name in the september edition of Contingencies.How about that for the man portrayed a a clairvoyant and a reformer.
page: 1
lanceOct 6th, 2008 - 16:45:58
They are plunging because everyone knows the valuation of equities has been absurd for years. In fact, fraudulent. It is an unspoken crime.
Remember when Bush wanted to put YOUR social security money into the hands of these bastards (with privatization)? What a joke. Bush is an idiot that doesn't know anything about financial matters.
Bush had a business once, his daddy's friends made him rich with an insider sale. He did not succeed on merits.
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