Prophecy in today's headlines

US Economic Turmoil – Dow Drops 500 Points

The US financial system is facing its worst periods since the Great Depression brought about by the failure of two of the worlds biggest investment banks and questions about the strength of a giant insurance company.

Lehman Brothers has filed for bankruptcy and Merrill Lynch is undergoing a forced sale to dodge the same bullet. It’s all part of the financial bleeding caused by the meltdown in the housing and credit markets in the United States which has seen the contagion spread far offshore.

The news led to sharp falls in share prices around the world. Washington Correspondent Kim Landers reports.

KIM LANDERS: Some are calling it “Meltdown Monday”. It’s a stunning reshaping of the Wall Street landscape with two of its largest firms falling or tottering, delivering the biggest test to the global economy in decades.

The 158 year old investment bank Lehman Brothers has filed for bankruptcy. A white knight buyer failed to appear when it became clear that the US Treasury wasn’t going to use Government money to clinch the deal.

Lehman falls under the weight of 60 billion dollars in soured real estate holdings. And the world’s biggest brokerage Merrill Lynch has been forced to accept Bank of America’s 50 billion dollar offer to snatch up the firm with the trademark “bull logo”.

Merrill had posted net losses of more than 17 billion dollars over the last four quarters and last week its stock plunged 27 per cent. Peter Morici is a Professor of Business at the University of Maryland.

He’s playing down ramifications of the upheaval.


1 response to US Economic Turmoil – Dow Drops 500 Points

  1. Its looking more every day like the people of us are going to turn on our goverment but but goverment is bringing our country down whith every where iturn people are thinking the same the thing people are buying weapons and more then ever ammo some are makeing propertys in the moutains livable.every where you turn people are geting ready for things to come. As it is people are looseing faith bad as it sounds it may be the only way out is to take down the goverment they are acting like your money is theres makeing laws that breach your faimly deap thith out considering any thing that may effect your and others live taxes are geting out of hand maybe we need to tare the goverment down and star over the basic the goverment needs to stay out of our faimilys lifes or we will be in trouble i see people takeing court houses all goverment offices but that whould not be a good ideal there will be no order the goverment is bigger then the poeple that isnt right our tax money is being throu around like its trash in the streets we need to make it smaller take out offices that we do not need and thats alot put them all on budgets cut out these $1500 night hotels let them stay in motel 6 they spend your money and dont care well i went a little long then i thought dont want to make it to long even thou i got alot more to say so be good and be ready

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