Friday, 10 August 2007

World financial collapse looms as credit crisis deepens

The whole system has been engineered to crash like this. The money doesn't evaporate it flows from the many to the few. That's why it works like this!! These types of crashes tend to also mean the start of the inexorable slide into war :-( And it's all happening again. And the majority of the population are far too interested in Paris Hilton and Big Brother to even care! Am I the only one who thinks we are being led like lambs to the slaughter? Well, warthogs instead of lambs but you get the idea!

Markets have faltered in Friday trading a day after markets in the US and Europe suffered heavy losses amid fears of a global credit crunch.

By the close of trade in Japan, the Nikkei share index was down 406.5 points, or 2.4%, at 16,764.1.

Japan's central bank followed the European Central Bank in pumping money into the market to boost liquidity.

In London the benchmark FTSE 100 opened nearly 2% lower, the French Cac opened down 1.83%, and German Dax down 1.9%.

It comes a day after the FTSE closed down nearly 2%, and following an overnight decline of close to 3% on the Dow Jones index in New York.

The Bank of Japan injected one trillion yen ($8.5bn; £4.2bn) into the financial system on Friday.

Global markets have been rattled by worries over financial institutions' exposure to bad credit in the US sub-prime mortgage market.

In Hong Kong the Hang Seng index ended the day down 2.88% at 21,799.96, after trade was suspended early because of a tropical cyclone warning.

South Korea's central bank said it would also intervene if necessary in financial markets to counter the international turmoil.

Central banks in several countries have been intervening in the money markets to prevent a continuing problem with US housing loans turning into a global financial crisis.

Full story...

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