Wall Street In Turmoil, World Markets In Crisis, All Is Still Fine & Dandy[Bush]
September 16, 2008 2 Comments
Asian stock markets plunged Friday in the wake of a sell-off on Wall Street
amid mounting concerns about a slumping U.S. economy and its impact on global growth
Photo credit – Canada Dot Com
Global stock markets tumbled Tuesday amid growing fears of a global financial crisis as investors reacted to the demise of two of Wall Street’s biggest names, Lehman Brothers and Merrill Lynch.
The storied New York investment bank [Lehman Brothers], crippled by $60 billion in soured real-estate holdings, was unable to find an investment partner to throw it a lifeline despite a flurry of last-minute negotiations over the weekend.
Investors were further shaken by the equally stunning news that Merrill Lynch, one of the world’s most famous brokerages, sought to avoid a similar fate with a $50 billion transaction to become part of Bank of America Corp.
The crisis appeared to be far from over. American Insurance Group, the world’s largest insurer, was fighting for its survival after downgrades from major credit rating firms, adding pressure to AIG as it seeks billions of dollars to strengthen its balance sheet.
Seichi Miura, strategist at Mitsubishi UFJ Securities in Tokyo, said already weak investor sentiment has been badly shaken by Lehman. He predicted extremely volatile markets ahead.
“The market just hasn’t been able to shake off an overall downward trend,” he said.