Chris Cantell Discusses Financials: American mortgage crisis is still to be sorted out by Corina Ciubotaru

The American financial crisis is a nightmare that doesn't seem to end soon. It started with mortgages, continued with the stock market experiencing record lows and is currently affecting even far-away countries. The European Central Bank and BNP Paribas in France have taken measures against this crisis; they have closed some funds and poured some money into local economies and now wait for the Americans to solve the problem. But solutions seem to come slowly and painfully. Mortgage rates are still rising, while the Standard & Poor's index fell 1.39 percent on Tuesday, the Dow fell 1.29 percent to 12,861.47 and the NASDAQ lost 40.29 or 1.61 percent. It's becoming increasingly difficult to get a mortgage, especially if the would-be recipient has a bad credit history and in the U.S., houses aren't even being built as much as they used to. Countrywide Financial has been forced to turn to a credit line to finance operations and the Fed announced a repurchase agreement worth $12 billion, but the move wasn't strong enough to reassure investors. European indexes FTSE 100 in Britain, DAX in Germany and CAC-40 in France also fell: 3.1%, 1.9% and 2.5%, respectively. Hong Kong's Hang Seng index fell 3.3%, the Straits Times Index in Singapore was down 3.35% to 3,273.25, while Tokyo's Nikkei fell 2% and reached 16,148.49. The situation isn't looking good, but American analysts believe the economy will bounce back of this unexpected mess, even though nobody knows for sure how long we'll have to wait before this happens.

related story: http://news.yahoo.com/s/ap/20070815/ap_on_bi_st_ma_re/wall_street;_ylt=AiP.NaJwl8qkX0WbpDfaiQus0NUE

by Corina Ciubotaru for PocketNews (http://pocketnews.tv)

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