banking - financial crisis - Lehman Brothers - USA
Japan shares reach four-year low in early trading
Monday 06 October 2008
Despite US Congress' approval of a bailout, the Asian markets took a tumble in early Monday trading, with Japanese share prices falling 3.6%, and Seoul and Hong Kong showing similar losses.
Special Report Global capitalism on the brink?Monday 06 October 2008
By AFP (text)
Japanese share prices tumbled 3.60 percent to hit a four-year low in morning trade Monday on growing worries about the financial crisis, despite US Congressional approval of a Wall Street bailout.
Dealers said it was uncertain how effective the US plan will be in stemming the financial turmoil, which is also deepening in Europe.
The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 393.81 points to 10,544.33 by the lunch break, levels last seen in May 2004.
The broader Topix index of all first section shares dropped 42.44 points, or 4.05 percent, to 1,005.53.
Investors were bracing for another weak session on Wall Street when trading resumes there, said Toshihiko Matsuno, deputy equity general manager at SMBC Friend Securities.
"Those shares that had been bought up, and the sectors that are directly affected by the current financial situation, are being sold again," he said.
The next key support level for the Nikkei is 10,500 points, he said.
Investors remained concerned about the outlook for the global economy and financial markets, despite the green light from Congress for a 700-billion-dollar Wall Street bailout bill.
Underscoring the worsening conditions in the world's largest economy, 159,000 US jobs were lost in September, official figures showed Friday.
There were also mounting concerns about problems in the European banking sector after Germany's fourth biggest bank, Hypo Real Estate, had to be rescued Sunday.
The development came after the leaders of France, Germany, Britain and Italy pledged to step up coordination on tackling the financial crisis, but stopped short of agreeing on a joint bailout fund for European banks.
Japan's central bank on Monday injected 1.0 trillion yen (9.5 billion dollars) into Tokyo's short-term money market, the 14th straight business day that it has poured emergency funds into the financial system.
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07/10/2008 01:17:05 Alert a moderator
Banking crisis and impending recession
By Derek - ACIB - Ashford Middlesex
Whatever they do they cannot restore the position to pre-crunch state. That was caused by banks lending funds which they didn't have to people who could not repay. It broke all the rules of banking and the directors of the banks should be ashamed of their incompetents. If governments want to return to that their thinking must be sadly lacking
06/10/2008 21:13:57 Alert a moderator
Is signing a bill means excuting it? Knowing that solutions
By Simon Mohammed - USA
Shall be projected to Emergency ones,
Short and Long Term where maybe redesigning the whole thing is necessary or introducing other rules or even taking off some.
The Stocks reaction is really bizzare, suggesting you sign on Friday and disturbe on Friday and finsih it on Friday.
Are they so Brook? Come one people.
06/10/2008 18:36:55 Alert a moderator
Mortgage Crisis US----
By Eva - US
The US economy is rotting from the inside out…
The housing/mortgage crisis is the epicenter.
.Perhaps with all the foreclosed homes we have here in the US there is a desperate need for an effective formula that is based on a specific area’s salaries, unemployment rate, and location to adjust to a rate that is reasonable with enticements from local municipalities (similar to first time home owner incentives) to get these homes off the market and into the hands of prospective buyers.
That is where I believe we need to focus on, this situation has been apparent for quite some time.
At least some kind of assurance indicating that the so-called “economists” are addressing this fundamental mortgage crisis issue with some kind of “game plan” would go a long way into giving our stock market confidence which it so desperately needs right now.
Just for the record I’m not an “economist” but I saw this problem a long time ago.
06/10/2008 14:58:21 Alert a moderator
Bailout NOT working
By Anonyme - Washington USA
The continuing slide in stocks just underlines the failing strategy of Mr.Paulson & the Congressional bailout of the US banks. His idea of maintaining the water level in a leaky bucket by just pouring more water in at the top can never work as we just dont know the extent of bad debts out there - they may be many many many times more than all the current money in circulation across the entire globe. There is only one way to stop the rot. Let the banks crash & burn, followed by public show trials with heavy jail sentences for the bank leaders & chancellors who have allowed this fiasco to happen. Just as the French mindset was permanently altered for the better by Madame Guillotine - so must the worlds financial masters be humbled!