The Global financial crisis.....
Lehman Brothers has filed for bankruptcy protection.The collapse of Lehman brothers(fourth-largest US investment bank) which had incurred billions of dollars of losses from the failing US mortgage market, has raised fears that other financial institutions could be hitGlobal credit crunch continue it impact on global Stock markets.You probably think you're save if you doesn't involve directly in the stock market but I telling you If more firms go bust ,people are loosing money .Just imagine if you have $1 dollar and the value has depreciated to $0.001... How about $10k?The money just "gone"like that. If this happens ,your affiliate income definitely will effected since every body tighten their belts more.
Let's go through what's happening in global market.
Global Stock markets down....
- UK's FTSE 100 shedding 3.43%
- HBOS losing about 35% at one point.
- Dow Jones index dropped 0.55% to 10,857 points(worst session on Monday since September 2001. )
- FTSE 100 index of leading UK shares fell 178.6 points to 5025 at close of trade .
- Japan's Nikkei 225 index dropped 5% to a three-year low.
- South Korea and Hong Kong shed almost 6%.
- China's Shanghai's index fell by about 3%.
- Taipei and Singapore were also sharply down, and the pattern was repeated in Australia and New Zealand, although the falls were smaller.
Emergency measures so far ......
Central banks around the globe have pumped funds into the money markets, including $50bn (£28bn) from the US Federal Reserve.
- £20bn from the Bank of England and 70bn euros ($100bn; £56bn) from the European Central Bank.
- US insurer AIG saw its shares slump by more than 70% at one point amid continued uncertainty over its future.
Banks ...
- Bank of England pumping extra £20bn (25bn euros; $36bn) into short-term money markets .
- The Bank of Japan has also carried out two injections of a combined 2.5 trillion yen ($24.1bn; £13bn)
- Australia and India also pumping cash into their money markets .
- London HBOS was down by about 22%, having fallen 35% at one point.
- Royal Bank of Scotland was down 10%.
- Barclays Bank - which said it was in talks to take on some of Lehman's US operations - was one of the big fallers, down more than 4.7%.
- In Paris, Credit Agricole and Societe Generale were both down more than 4.5%, while in Germany Commerzbank dropped 12% and Deutsche Bank fell 4.5%.
The effects ....
- Dollar slid to a four-month low against the yen before reversing earlier losses.
- Japanese-registered Lehman Brothers Japan and Lehman Brothers Holdings have applied to the Tokyo District Court for bankruptcy protection.
- Oil prices have fallen further amid concerns that a slowdown in the global economy will dent demand.sweet crude fell $3.96 to $91.75 a barrel in morning trade in New York. (it could be good news to you )
- House prices have fallen by about 11%, because the credit crunch has choked the supply of mortgage funds. Hit on estate agents and the owner of the property .(Sales are down by about 50% in the past year; mortgage approvals are down by more than 70%)
The fears continue....
- There were fears that , one of the world's largest insurers,AIG could also face collapse. In late morning trade in New York on Tuesday AIG shares were down $2.20, or 46%, to $2.56. coming back from an intraday low of $1.25 but below the day's high of $4.57.The State of New York announced a "multi-billion dollar financing plan" on Monday to stabilize the insurer's finances. AIG is much more than an insurance company.check out How banks depend on AIG.you will know why it's scarly.
- HBOS's share price is blindingly obvious.it provides 20% of all UK residential mortgages; the UK housing market is the major vulnerability of the UK economy; if there's a sharp rise in the number of homeowners defaulting on their mortgages,
Short Conclusion..
Stock markets have continued to fall .If more firms go bust, there are fears that gaining credit will be even harder, hitting not only large firms but individuals .We're in the middle of a crisis," said YK Chan at Phillip Asset Management in Hong Kong.There’s nothing you can do,no matter what happened.Don't panic. Good luck.
By :elvin.
Info sources :http://news.bbc.co.uk/.Upated :
US gongressional approval of the government's $700 billion financial rescue plan.However,the credit markets remained stagnant, with no immediate signs of when lending and borrowing would return to levels even approaching normalcy.
Due to the above circumstances,Us has release A new Dollar bill for Economic Crisis.
Grab it now...
