If you love waking up to bad news, here goes. Stocks tumbled this morning falling below 10,000 points, the first time in four years. Currently, European governments are trying to suffice their own failing financial firms. CNN reports:
‘”Credit markets remained tight, with two key measures of bank jitters hitting an all-time high. Treasurys rallied, lowering the corresponding yields as investors sought safety in government debt. Gold rallied for the same reason. Oil dipped. The dollar was mixed versus other major currencies.
The Dow Jones industrial average (INDU) lost around 400 points or 4% in the early going, and fell below 10,000 for the first time since Oct. 29, 2004. The Standard & Poor’s 500 (SPX) index and the Nasdaq composite (COMP) both lost more than 5%.”‘
Oh, and it gets even better. The Federal Reserve also mentioned today that they will be making available an additional $300 billion dollars for banks to purchase bad assets. So now, the amount available to banks will be $600 billion, and may rise up to $900 billion by the end of the year. The $700 bazillion bailout bill that passed on Friday (purchase of bad debts from banks so they’ll start lending to each other again blah blah blah) won’t do much to help the market. No shit. Well, at least not soon. Investors are still on their toes about his one.
Europe is even jumping in on the bad debt trend too! Germany has negotiated a $69 billion dollar deal with Hypo Real Estate, AG. Being the second largest economy in Europe, all private bank accounts have been guaranteed. France BNP Paribas will purchase 75% of Fortis’s Belgium bank. Why? Because a government bailout failed to reassure investors.
It is October…let’s hope history doesn’t repeat itself 😦
What a great day to be alive!