UP Ibalon Bicol: Worsening US financial crisis spreads overseas

Worsening US financial crisis spreads overseas

9/30/2008 | Posted by mesiamd | Edit Post

The Asian markets open today with grim news that the Dow Jones industrials plunged 780 points after the US government failed to pass the $700 billion bail-out package that is hoped stabilize the floundering economy. Today's trading is expected to be bad overseas. With little time to waste, Capitol Hill is back to rewrite a bill that is deemed vital in averting a domino-effect in cash-strapped financial institutions threatened by bankruptcies.

“But Wall Street found further reason for worry overseas, as the fallout from U.S. economic problems keep spreading. Three European governments agreed to inject Fortis NV with a $16.4 billion bailout. Fortis, with has headquarters in Brussels, Belgium and Utrecht, Netherlands, is Belgium's largest retail bank.

The British government, meanwhile, said it is nationalizing mortgage lender Bradford & Bingley, which has a $91 billion mortgage and loan portfolio. It was the latest sign that the credit crisis has spread beyond the U.S. “----AP (09/129/08,Paradis,T)

Americans, skeptical of the political maneuverings in the Congress, are enraged by the uncertainty Wall Street has placed their jobs, savings, homes, investments, and retirement plans. With few options in sight, they wait for the government to shore-up the economy with the bail-out proposal whose final result is unclear. The public seems inclined to focus on a solution for now, but the blame is trickling in, highlighting the greed, negligence and corruption. =0=