Posted on 10/06/2008 6:45:04 AM PDT by TigerLikesRooster
October 6, 2008
Markets tumble as banking fears spread across Europe
Philippe Naughton
Britain's blue chip companies lost £60 billion in value in just a few minutes today as investor confidence crumbled and political leaders battled to avert the threat of recession.
The FTSE 100 index of leading shares fell by some 250 points in the first six minutes of trade, following sharp losses across Asia, and drifted down to reach a four-year low of 4,670.9 by late morning, 6 per cent down on Friday's close.
For policymakers and central bankers, it was a nightmare start to the week – little helped by the failure of EU leaders to agree on a European banking rescue scheme or even, it appeared, on a common strategy.
There was continued confusion as to the detail of Germany's decision to guarantee all private bank deposits as Austria and Denmark broke ranks to follow suit and Spain threatening to do so if the EU did not take action.
Both Gordon Brown and Alistair Darling, the Chancellor, who is keen to avoid a similar blanket guarantee, were working the phones. Mr Brown discussed the crisis with President Sarkozy of France this morning and was due to talk with Angela Merkel, the German Chancellor, later today to clarify Germany's plans.
"In the last 24 hours, the Prime Minister and the Chancellor have been spending a lot of time on the phone. We continue to urge cooperation at an EU and international level," his spokesman said.
No stock was in positive territory on the UK benchmark index but banks were again among the biggest fallers, with Barclays, Royal Bank of Scotland and HBOS down between 11.8 and 15.5 per cent.
(Excerpt) Read more at timesonline.co.uk ...
Ping!
When the dust settles...a 20-25% minimum shrink back in the global economies.
We have one, and only one, presidential candidate to thank for this: McBama.
Germany is still stunned by Hitler. I think they are incapable of making any plans until they get over their "problem" and realize that freedom is a God given gift, not some socialistic norm to be ignored when circumstances dictate.
"We feel that Europe needs our help and we are putting together a new bailout package to help them," Pelosi said this morning at a news conference.
"We cannot allow Germans, Irishmen, Frenchmen and all the others who have been victimized by the mortgage industry to lose their homes," Reid added. "This Congress will not rest until their homes are secure."
What? Didn’t the rest of the world get the news that the U.S. executive and legislative branches of our government (a.k.a. the taxpayers) are going to save the world with that $850 billion “rescue” plan? /sarc
I believe our "representatives" have the same difficulty.
the bailout is working folks....thank your local politicians....
You forgot to aid to this list their allies Bush and McCain. Both never met a socialist billionaire bailout plan that they didn't like.
Of course, you know what the “official” pro-bailout defense will be. “It would have been even worse without the bailout.” Yeah, right.
I agree with you. I could discuss how the dem portion try to promote "heaven on earth" while declaring there is no god, but I will not bore you with the details.
There will be a major revolt in the USA if this happen!
Where were these “allies” when we needed them in the UN or NATO?
Fix your own problems EU! You should have thought twice before uniting and going to the Euro. IMHO, you can’t even unite much less win an economic war.
Yes, greedy hands all over the world outstretched for their piece of the bailout pie.
All the idiots that voted for the bailout, Dems and Repubs both, need to be voted out of office.
DJIA bouncing around 10010, down over 300 points, so far...
So, I’m a little confused here... Does this mean that the bailout legislation is only sorta working? Who’s to say that the bailout is having any positive impact in the least?
This is what happens when we show the world that the US has no fear of printing up some more trillions. The world is
betting on BHO winning.
The new(old) US economic plan is to have a crisis and throw money at it. No need for lengthy debate, no worries about the constitution, just write the check. We in the US have little choice but to deal in dollars.
Other countries do have a choice and the last thing they will want as inflation kicks in, is to be holding US dollars/treasuries/stocks.
Can anyone say, “UN Proposal for a Global Currency”? I knew you could...
It’s just like all the economists that were against the stupid bailout were right or something, huh?
How is it that people think that their representates and senators are smarter than themselves when they take a bill that was at its core the same bill they defeated 4 days earlier with added pork and vote it in.
Insanity is defined as doing the same thing over and over a different result. Well, insanity got its day in congress last week! I’m still just completely baffled as to how the heck they thought more legislation would fix a mess that was caused in large part by faulty legislation!
UGH!
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