More banking woes hit US shares

[George]

More banking woes hit US shares
Last Updated: Friday, 9 November 2007, 22:18 GMT

The main US share indexes fell sharply on Friday, hit by ongoing concerns about the impact of the US mortgage debt crisis on leading banks.

Fourth largest lender Wachovia sparked the latest share falls after it said its losses on bad mortgage debt would total $1.1bn (£525m) for October alone.

Its admission, just the latest from a major US bank, saw the Dow Jones index end down 224 points or 1.7% to 13,042.

The Nasdaq index also fell heavily, down 68 points or 2.6% to 2,628.

Dominated by technology companies, sentiment on the Nasdaq was further hit by weak results from wireless telecoms firm Qualcomm.

http://news.bbc.co.uk/2/hi/business/7088215.stm


Something is going on :scratch ..... I hope this will not have a snowball effect on the rest of the world markets. :idunno

[Vonne]

It seems to be a painfully isolated problem :sigh

[felixthecat]

It's the subprime market and credit card debt.

Who would want to buy that debt? There is too much of it - which makes it worse. It's a snow ball effect. The U.S. is riding the coat tails of a good reputation and investors are looking at the reality of the situation - and it's NOT GOOD.

And we don't need government bailing folks out. This only rewards more irresponsibility!

People have got to get a handle on their finances

and government needs to stay out of it!

[Racheal59]

Trust THE LORD.

[Bonny]

http://www.financialsense.com/Market/barbera/2007/1106.html

For people interested in reading an "academic" analysis of what is going on with our financial institutions - this article is for you. It is a bit techinical though. I read another article stating a good part of the problem is China "playing games" by threatening to not use the $ any longer, thereby causing it's value to decline further.

Hope no one posted this link in another thread.

[Racheal59]

Praise the Lord for all good things.