Knitting the economy, not dropping a stitch…

Idol plans for the idle rich… still living with the English fear, waiting for the witch hunt dear. The Mob 1980

From The Times, London, England 15 September 2008

Global stock markets plunged this morning after it emerged that Lehman Brothers, the 158-year old bank, had filed for bankruptcy after the failure of a weekend of rescue talks masterminded by US Government.

The Bank of England moved to calm UK markets today by pumping £5 billion into the short-term money markets, to guard against fears that financial markets will grind to a halt if banks, spooked by the collapse of Lehman, stop lending to each other.

Earlier this morning, the Bank said it was “monitoring carefully conditions in sterling money markets and will take appropriate actions if necessary to stabilise those markets”.

In London, the FTSE 100 index of leading blue chip companies fell by 184.1 points to 5,232.6 in morning trade, reversing gains made at the end of last week when a chance to secure Lehman’s future remained.

(More, similar, on Google News)

  1. andus
    October 4, 2008 at 10:38 pm

    Stocks slump despite bank rescue

    NEW YORK ( — Stocks slumped Friday, as a brutal week ended with President Bush signing the historic $700 billion bailout plan after weeks of contentious debate.

    Credit markets remained frozen, despite the vote, with two measures of bank jitters rising to record highs. Investors also looked to Wells Fargo’s planned purchase of Wachovia and a dismal job market report.

    The Dow Jones industrial average (INDU) lost 1.5% Friday and 7.3% for the week. On a point basis, the Dow lost 818 points this week, its biggest weekly point loss in seven years and the third biggest weekly loss ever.

    The Standard & Poor’s 500 (SPX) index lost 1.4% Friday and 9.4% for the week. On a point basis, the S&P lost 114 points, the worst weekly point loss in seven years and the third biggest weekly loss ever.

    The Nasdaq composite (COMP) lost 1.5% Friday and 10.8% for the week. The 10.8% decline was the worst in seven years and fifth worst ever. But the weekly point drop of 236 points fell outside the ten worst in history.

    Wall Street rallied ahead of the early afternoon vote – with the Dow up as much as 313 points – as investors bet the House would pass the modified version of the bill after defeating a similar measure Monday.

    But once the House voted 263-171 to pass the bill, which would buy illiquid securities in order to unfreeze credit markets – stocks gave up gains. News that President Bush signed it into law failed to stop the downtrend.

    Wall Street was probably taking a classic “buy the rumor, sell the news” approach, analysts said. Additionally, markets may have implied that even with the new law, the economy remains under dures.

    By Alexandra Twin, senior writer
    Last Updated: October 3, 2008: 5:46 PM ET

  2. alistairliv
    alistairliv • Post Author •
    October 8, 2008 at 9:38 pm

    UK now going to give the bankers £500 billion to loan to each other.

  3. Andus
    October 10, 2008 at 11:12 pm

    Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for £10 each. The villagers, seeing that there were many monkeys around, went out to the forest, and started catching them
    The man bought thousands at £10 and as supply started to diminish, the villagers stopped their effort. He then announced that he would now buy at £20. This renewed the efforts of the villagers and they started catching monkeys again.
    Soon the supply diminished even further and people started going back to their farms. The offer increased to £25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
    The man now announced that he would buy monkeys at £50. However, since he had to go to the city on some business, his assistant would now buy on behalf of him.
    In the absence of the man, the assistant told the villagers, “Look at all these monkeys in the big cage that the man has collected. I will sell them to you at £35 and when the man returns from the city, you can sell them to him for £50 each.”
    The villagers hurried round with their savings and bought all the monkeys.
    Then they never saw the man nor his assistant again, only bloody monkeys everywhere!
    Now you have a better understanding of how the stock market works.

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