The International Monetary Fund said on Tuesday that more countries were seeking its help coping with the economic crisis every day, while banking and auto industry woes reverberated around the globe. Japan's economy minister said recession in the world's second-biggest economy could last longer than feared.
In the United States and Britain measures of inflation fell sharply, paving the way for further interest rate cuts. And in an illustration of the alarm gripping America's auto industry and the impact of U.S. troubles on economies well beyond its frontiers, Ford Motor Co decided to sell its controlling interest in Japan's Mazda Motor Corp. U.S Treasury Secretary Henry Paulson told Congress on Tuesday that the administration remains firmly opposed to dipping into the government's USD 700 billion financial bailout fund for a USD 25 billion rescue package for Detroit's Big Three automakers, no matter how badly they need the help.
In Washington, Bush administration officials defended the decision to use bailout funds to recapitalize financial institutions, instead of buying bad assets as had been originally proposed. U.S. Treasury Secretary Henry Paulson, in testimony to the House of Representatives Financial Services Committee, said the global slump had become so severe that "an asset purchase program would not be effective enough, quickly enough."
Banking, seat of a crisis inflicting the sharp international slowdown, also showed the strain. Britain's Barclays altered fund-raising plans to quell shareholder anger and profits in Japan's largest bank tumbled.
It seems that things are starting to get out of hand already. At first it look like things are getting bad but now it turn out to be worst than that.Everyday if we search some news inside the Internet about U.S financial crisis, the news that come out everyday suggest that the U.S Financial Market still have more rooms to go down. All the news that come out everyday; only to show more negative element rather than positive news.
This morning the Wall Street tumble again. The Dow Jones Industrial Average tumble -427.47 points to close below 8,000 points for the first time. Wednesday marked an ugly session on Wall Street, with the S&P 500 and Nasdaq tumbling to their lowest levels in five years and the Dow dropping to a five-year closing low.
With DJIA moving closer near to its recently low of 7,882.51 points, today world financial share market movement will be crucial. Everyone will be anxious to wait and see what will happen next if the DJIA open its market tomorrow ? Can we assume that the opportunity has arrive ?
4 comments:
if indeed the world enters a recession or a more favourable description-pause for breath,it will be a blessing in disguise for the americans who are in essence living beyond their means for no less than 20 years
all excesses and thick layers of fat accumulated over the past decade needs a trimming anyway.a crisis of this proportion albeit having a devastating effect on the poorer countries will usher in some form of normalcy after the dust has settled
i dont believe in doomsday scenario painted by all these 'experts'-temporary pain a definite yes but realignment or readjustment of the current excesses can only augur well for the health of our future financial system in the future
I was hoping what really happen here in the first place should not take too long to heal.
What really happen during 1997 Asian Financial Crisis strike, it took about 3 to 4 years to heal everything. Hopefully this time it will not take us that level; a level we call "The Great Depression".
I was hoping it to last same in between 3 to 4 years and without The Great Depression occours.
the 1997 crisis,the lost decade in japan after the property bust in early 90's and the current financial debacle has 1 similar theme-greed
the likes of the 1929 depression repeating itself here is virtually o .with massive,relentless uncompromising and courageous'interference'(injecting cash or bailouts) by government of the day across the world,the chances of us slipping into any semblance of a deep recession is remote-all these vhape u shape lhape and bull***etc will only be a footnote in history!!
laissre faire economy championed by the capitalist west is a dead animal to be replce by the not unfsmiliar hollow dictum or reminder-extraordinary time calls for extraordinary measures which
read my lips-bailing out failed institutions becos of mismanagement or greed
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