Chris Cantell Discusses Financials: Credit Crisis – Volume 1 by Milota Sidorova

Wall Street remains the old hysterical man. Well for an ordinary watcher, there’s a reason to be. Dow Jones has torn the record. In five merchant days it has declined from 14,163.53 below 10,000 finishing at 9,497.11. Literally it’s been more than 500 points in a single day and 875 points in 48 hours. Well, except of dementia panic, one of the key decline generators was surely 3Q financial report of Bank of America, Corp., declared as one of the survivors and giant monopoly in crunching economy just 24 hours ago. In fact, they reported loss of 68 percent with the immediate response of 26 percent stock decline down to $23.77 per share on Tuesday. The second, however more a rumour kind of information shaked the investors calling for more explicit FED’s steps. Japanese Mitsubitshi UFJ Financial Group was probably thinking of pulling out of a deal that would assure it almost 24.9 percent share at Morgan Stanley, actually one of the ‘real survivors’ on American market.

As for light crude, it has been steeping $2.25 settling at $90.06 per barrel on New York Mercantile Exchange yesterday.
As for FED, it has proposed detail manual on $900 billion amount on short term loans. Banks will be free to get a federal loan via auctions. FED has also declared the timeschedule. Ben Bernanke also showed us emotional package suggesting the economy was slowing considerably and credit markets were deteriorating rapidly. Thanks for letting us know, Mr.Bernanke.
Surely it would be better to focus more on the real problem. As for Wall Street, more than 2800 stocks dropped compared to fewer than 400 advancing. The European markets have been volatile and as far as one know they are expected to remain volatile next months. The main Iceland bank Icesave has frozen whole bank operations leaving its clients without barely access to their money. Japan Nikkei closed on 3.03 percent drop.
There’s been some good news coming from Australia last days. Reserve Banks of Australia has cut of full percentage rate pumping up the majority of Asian markets. Though, we still don’t know whether FED gets inspire to follow the strategy. Japan has already dropped this idea.


related story: http://news.yahoo.com/s/ap/20081007/ap_on_bi_st_ma_re/wall_street;_ylt=AizSrehn2o89Ehs6ktxvJN6s0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova