The collapse of the U.S. economy threatens the entire world
Yesterday, the U.S. stock market fell again. The reason for the fall of quotations of most American companies became the largest bankruptcy Bank of America Lehman Brothers. Recall that the company declared bankruptcy as early as Monday evening.
The loss of financial giant
The cause of the collapse of the oldest U.S. bank, which was 158-year history, according to most financial analysts were bumbling of the guide company, which has not been able to agree with investors and creditors that the bank owes 613 million dollars. Besides fuel to the fire dastardly and power of the United States, who refused to rescue Lehman Brothers, bought out instead of the other major U.S. banks Merril Lynch.
The crisis in the banking sector dollars, according to most analysts, will go on for a very long time. This is because at the moment the U.S. economy is going through is far from the best times in the mortgage, insurance and stock areas of the banks.
We note, incidentally, that collapsed the day before Lehman Brothers was the leader on turnover of mortgage bonds and securities to guard against non-payment of the loan.
Rescue of drowning - the work themselves drowning
The other U.S. banks, ceasing to wait for assistance from the state, decided to save themselves.
Thus, the 10 largest U.S. banks agreed to merge some of their financial assets and create a stabilization fund of 70 billion dollars, which is designed for emergency financial assistance. Meanwhile, the bank "anti-crisis coalition" comprising Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Merrill Lynch, Morgan Stanley and UBS.
The crisis of the American economy provoked an immediate reaction of world financial circles. As a result, unprecedented downturn in the U.S. stock market, quotes the banking sector collapsed around the world. Investors are not simply become afraid of investing money in the banking sector. They no longer believe in the profitability of banks.
Is it not better the situation and the depositors. They doubted the reliability of the preservation of their deposits as well as the collapse of insurance banks questioned the proper provision of deposit insurance.
As a result, the financial crisis in the United States struck a serious blow to the global economy. Now, many foreign investors have given up investing money in the U.S. economy.
So the authorities of China have already revised their view of the credibility of their money to American banks. At the turn Russia, which puts the U.S. its stabilization fund.
By the way, the economy of Russia just been hit with financial disaster. For example Micex index yesterday fell to 6.18%, RTS - at 4.78%.
But the situation soon calmed down, and Russian shares went up again. Confidence Russian investors have assured authorities that the American banking crisis would not affect the Russian economy, as well as the reliability of Russian banks are currently high, and they do not depend on American colleagues.