CRASH: 800 Point Drop on Widening Woe

By Beau Friedlander

Flickr: Creative Commons by Siebbi

The world financial crisis widened Monday with the German government's decision to save Hypo Real Estate Holdings. World markets were in widespread collapse today with all major markets down, and all 30 indicators of market health in the red. Oil dropped below $90 a barrel.

The Wall Street Journal reported:

The cost of borrowing overnight U.S. dollar funds in the interbank market had risen to 2.36875%, up from Friday's fixing of 1.99625%. Yields also fell sharply as investors again flocked to U.S. government debt. The yield on three-month Treasury bill fell to near 0.4%, showing that investors are willing to accept almost no returns in exchange for the certainty that they'll get their cash back in hand after marking a short-term loan to the government.

The benchmark 10-year note gained 1-10/32 to yield 3.442% as investors rushed to move money into Treasurys and away from riskier assets like shares.

At 3pm EST today world markets were at a 20-year low. [The recession is] Developing [apace].

FILED UNDER: Finance, $700 Billion Bailout, Economy, Globalization, Wall street
October 6, 2008
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"The free, unrestricted market will take care of itself"

Yup. Sure will. The only thing it hasn't been able to do is call for its own gravediggers. It's already too weak to make THAT call.

I hope the RepubliCANTs have plenty of cash laid in for the winter. They'll have to burn quite a bit of it to heat those huge houses.

If all else fails, immortality can always be assured by spectacular error. ~~~John Kenneth Galbraith

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By nonexistent manOctober 6, 2008 - 2:49pm

Some peoples huge houses

Are other people's heat source ;}

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By aaazzz111October 6, 2008 - 9:30pm

aaa,

that sounds hateful.

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By scottso360October 6, 2008 - 9:35pm

hot news...

mccain wants to cut $1.3 trillion...
from medicare and medicaid.
says the wall street journal.
http://online.wsj.com/article/SB122315505846605217.html

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By scottso360October 6, 2008 - 9:37pm

but why just hint at violence?

go do it if you are such a macho revolutionary.

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By scottso360October 6, 2008 - 9:40pm

actually, it's a $820 billion bailout...

welfare for banks.

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By scottso360October 6, 2008 - 9:44pm

on the other hand,

they really don't know how much it is going to be.

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By scottso360October 6, 2008 - 9:47pm

i'm on hold with clout man....

looks like he is not going to let me on. freedom and democracy.

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By scottso360October 6, 2008 - 9:50pm

What are talking about?

Let me take you by the hand, and fly you to the vision of a little wealthy fenced-in suburb village. Every block empty of life. Only watch patrols bear witness the ghostly grid spectacle. A museum to Republican stupidity. No one will ever live there. The cheapboard facades of grandeur will rot to dirt, before the new crop of historians, anthros, and archies can make record of the nonsense.

The only violence was to the middle class, trying to secure a viable culture. A reason and a continuance of human footprint.