The financial crises in the US has made waves across the globe. Barry Sargeant from Moneyweb made a brief synopsis of the global ripples:
- The Dow Jones Industrials fell as much as 700 points in midday trading after it was announced that the government would not bail out the industry for an estimated $700 billion
- in the UK, Bradford and Bingley, Britain's ninth-biggest mortgage provider, was nationalised
- In Iceland the government seized control of Glitnir bank – the third largest in the country
- Fortis, a large Benelux banking group, has been saved by the governments of Belgium, Luxembourg and the Netherlands when they announced that they were to invest €11.2bn (£8.9bn) to support the group
- In Europe, Dexia's stock price was down 29%, while in the US, Wachovia fell 27%, and Sovereign Bancorp lost 52% of its value.
- "The Nikkei Stock Average of 225 companies was down 3.3% midday, while benchmark indexes in Australia and New Zealand were down 2.9% and 3.1% respectively. Taiwan's stock market, open for the first time since Friday due to a typhoon, was down 4.3%, while indexes in Singapore and Hong Kong were both down 2.4%. China's markets remained closed for a week-long holiday." more
- In Germany, the government provided €35bn in credit guarantees to Hypo Real Estate Bank,
- And in France president Nicolas Sarkozy has assured citizens that the government would protect depositors from any potential losses brought on by the credit crunch
- Among individual country indices, China was down 55%, the UK by 28%, Germany by 29%, Japan by 32%, and France by 29%.
- The world banks index has fallen 38%, while world materials, which includes resources such as mining and oil, is off by 35%.
For more news articles on the effect of the crises, click here.
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