The bailouts of individual countries have failed to make a dent in the multi trillion dollar financial mess. This is going to take multinational effort. It is a world wide crisis in credit that is going to take an international effort to control.
We need bank nationalizations and the establishment of an international control mechanism on the stock market. This cannot be allowed to go on without tight and specific regulation. It may cramp the style of some of these ‘masters of the universe’ but without that control, there will be no end to this cycle of booms and busts. If it was only affecting the players in the stock market I would say fine, let them play, but when it affects the livelihood of average citizens around the world, then I say, regulate, nationalize and multinationalize. We need a world economic agency to control a world economy.
Here is the BBC’s latest take on wall streets reaction to the latest bailout in the USA and the individual actions of European governments who can’t seem to agree on a unified approach.
“Financial crisis pummels stocks
Investors have not been bowled over by government intervention
World stock markets have plunged after government bank bail-outs in the US and Europe failed to stem fears of slower global economic growth.
London’s key UK share index lost 7.85% - its biggest percentage fall since 1987 and in Paris the Cac-40 suffered its largest fall on record.
On Wall Street, the Dow Jones fell below 10,000 points for the first time since 2004.
Earlier, Asian stocks had taken a hammering from investors.
A failure of government intervention to improve banks’ willingness to lend had left markets anxious, said analysts.
This was despite a $700bn (£398bn) US bank bail-out being passed late last week, and efforts by several European countries including Germany and Denmark to boost confidence in their banks.
“The Fed’s bail-out plan may have been passed on Friday but so far there’s been no real reaction in credit markets and because of this the natural assumption is going to be that the measures won’t work, even if such a call is rather premature,” said Matt Buckland of CMC Markets.
Stock markets are falling… and it’s the troubles of Europe’s banks, and the messy response of the authorities, that’s to blame
BBC business editor
Read Robert’s blog
Interactive map: How European governments have reacted
In an attempt to reassure investors, the President’s Working Group on Financial Markets, said on Monday that it was moving quickly to exercise the new powers it had been given as part of the Wall Street rescue package.
The group, which was formed after the 1987 stock market crash, said it would move “with substantial force on a number of fronts”.
As one of the first effects of the rescue plan, the Federal Reserve announced that it would start paying interest on the reserves that banks are forced to deposit at the central bank.
Analysts said that Germany’s increased 50bn euro ($68bn; £38.7bn) bail-out of Hypo Real Estate, the country’s second-biggest commercial property lender, had alarmed investors.
Germany earlier appeared to announce an unlimited guarantee for private savings - though later said this was not the case and had instead given only a “political commitment” that savers would not lose deposits.
However, Denmark had already moved to offer full protection, while Sweden massively increased the level of protection it offered.
The Hypo RE rescue came amid other developments including:
Iceland’s government offered unlimited guarantees on savers’ deposits. It had earlier agreed measures for the country’s banks to sell off some foreign assets in an attempt to shore up its entire financial system.
Trading in shares of Benelux bank Fortis was suspended - the day BNP Paribas took a controlling interest in the troubled finance group under an emergency deal with the Belgian and Luxembourg governments
Central banks across Europe - including the ECB and Bank of England - offered more than $74bn to banks in short-term loans in separate efforts aimed at trying to making cash available for the banking sector.
International Monetary Fund managing director Dominique Strauss-Kahn said Europe needed a collective response to the financial crisis and warned countries not to act alone.
Spanish Prime Minister Jose Luis Rodriguez Zapatero and French President Nicolas Sarkozy arranged meetings with the heads of their respective country’s main banks to discuss the global financial crisis - and said the two leaders would meet later this week.
In London, the FTSE 100 index was down 391.1 points, or 7.85%, at 4,589.2 - having lost 8.5% at one point.
Germany’s Dax index lost 7.39%, while France’s Cac-40 index dropped 9.04% - its biggest one-day fall since the index was created in 1988.
On Wall Street, the Dow Jones index pulled back some losses but was still 4.05% lower, down 418.39 points, at 9,906.99 points, while the Nasdaq lost 4.93%.
Earlier, Japan’s Nikkei index had closed down 4.3%, or 465 points, at 10,473.1 - its lowest close since February 2004. Hong Kong’s Hang Seng index slid 5%, while key Russian markets slumped by 15%.
Markets in India, China, Australia and Singapore also lost ground, while the main Indonesian market lost 10% - the biggest one-day fall on record.
Trading on key stock markets in Brazil and Russia was temporarily suspended after share prices plummeted by 10% and 15% respectively. Russia’s RTS index ended 19.1% down.
The prospect of a slowdown denting energy demand saw oil prices fall further, dipping under $90 a barrel.
In London Brent crude dropped $3.38 to $86.87 a barrel, while US light, sweet crude fell $3.85 to $90.05 a barrel.”
I recently had my computer stolen. My postings are going to be more catch as catch can until I can replace it. But I will continue to express my unique viewpoint as long as the internet is relatively free.