Markets rattled by bank worries
Markets from New York to Tokyo have recorded heavy losses in reaction to the emergency bailout of US investment bank Bear Stearns over the weekend. In New York the Dow Jones Industrials tumbled in early trading before recovering some ground. London's FTSE 100 index ended down 3.9%, in Paris the Cac 40 slumped 3.5% and Frankfurt's Dax fell 4.1%.
And those numbers are good compared to the Asian markets which are right now hemorrhaging and as I write the Dow is down 160 points which is pretty calm seeing that the bank Bear Stearns was just sold for 100th of its price ($2 a share) – this was one of the biggest corporate banks in America who in 24 hours has just collapsed – all of this is not good news, perhaps the mind boggling greed shown by so many American banks to lend as much money as can be printed to people who could never pay it back, all the while back slapping each other with obscene bonuses may all come home to roost for American capitalism.