Financial tsunami. Was like this Financial market circle depicted falling off drama of several giants and foremost Wall Street financial agency of investment bank in several last days. Like bad dream. In a short time, condition for financial US market as being turned upside down and cleared completely. Lehman Brothers, that was the security's fourth company biggest in USA and one of eldest in Wall Street, must claim bankrupt. Merrill Lynch must give itself willingly was acquired by company that became his rival uptil now, Bank of America.
US government was also forced to backup and Federal Reserve must become lender of resort ( last liquidity guarantor of banking) several giants, securitas agency or insurance company of investment bank, and the credit guarantor who fell one by one, from Bear Stearns, Fannie Mae and Freddie Mac, IndyMac, and American International Group (AIG), for reasons of systemic risk. UBS, savings bank, and biggest credit bank Washington Mutual also on horns of a dilemma. Till now was not yet found investor backup of capital.
Two investment banks that still were remaining, Morgan Stanley and Goldman Sachs, possibility will also be forced merger with other bank in order to avoids similar fate. US goverment must swallow saliva personally. US country of economic superpower beforehand refused to entry of investment property of the foreign government (sovereign wealth fund/SFW) to financial agency and other strategic sector in country—because pressure of the nationalism sentiment inside— currently must beg to foreign banks to acquire or become to national partner of banks merger because of liquidity crisis.
Fall of big Wall Street—series from credit crisis stalled housing since July 2007— triggered concernoccurrence of domino effect guided to bankruptcy spiral of all financial system global. In England, as far as this is concerned two English banks kolaps, HBOS and Halifax Bank. Fall of foundation of Wall Street finance also had an impact very destructive in US economy, the financial market, and the global economy.
Stock Exchange experienced biggest fall since incident of terrorist's attack to World Trade Center, on September 11 2001. Achievement for last 10 years then vanished with index of Standard & Poor’s descended under level in 1998. Till yesterday, share from various sectors in an accross manner board continued to fall, was followed the index in stock exchanges all over the world.
Analyst's warned, crisis entered period that was increasingly dangerous with almost paralysed promissory note market because of investor in various corners of world panicked fought moved money to safer instrument, like T-bills and gold.
Liquidity crisis, that was combined with crisis of confidence also made the interest of loan for sector of corporation soar, made difficulty business world finance their everyday operation activity. Interest of short-term loan (overnight) could jump as far as 8.5 percent, on Thursday, before descending back to 2 percent pascaintervensi developed countries central banks.
Situation in Wall Street from hour to hour and day after daywas very fast with effect ramifikasi was wide all through corner of the world made was not a single dared to forecast what will happen in future. Several analysts, including former Chief Fed Alan Greenspan predicted will have again financial company big other in Wall Street would kolaps.
Bankrupt
The Fed and US government has taken several steps to restore market belief. Apart from facilitating takeover of financial agency kolaps with other company, Fed also widened collateral kind for Fed loan. With this facilities, was enabled by financial agency guaranteed share to get funding facilities of Fed emergency loan.
US government will also increase valuable letters government in periodic auction carried out by government. With pressure, Fed also succeeded in forcing 10 banks to be biggest merger for assembled fund with a value of 70 billion US dollar as source of liquidity emergency be used financial agency short-term liquidity difficulty. Securitas commission and Share also dismissed rule banned practice of transaction short selling.
However, as far concerned all these efforts failed to make market convincing. Fall price of share was just kept after circle developed countries central bank carried out intervention pumping liquidity with a value of 180 billion US dollar to global money market in an effort to alleviate liquidity crisis dealt with Wall Street. However, analysts believed in his effect only will be temporary.
Falling off of Wall Street institution shows fragility of foundation US capitalism system with Wall Street as leader. Crisis was resulting from combination hazard spirit extraordinary in Wall Street financial industry and attitude closed eyes in authority financial market, FED, but also US government uptil engrosseded in flirting with big boy in Wall Street.
US government was also forced to backup and Federal Reserve must become lender of resort ( last liquidity guarantor of banking) several giants, securitas agency or insurance company of investment bank, and the credit guarantor who fell one by one, from Bear Stearns, Fannie Mae and Freddie Mac, IndyMac, and American International Group (AIG), for reasons of systemic risk. UBS, savings bank, and biggest credit bank Washington Mutual also on horns of a dilemma. Till now was not yet found investor backup of capital.
Two investment banks that still were remaining, Morgan Stanley and Goldman Sachs, possibility will also be forced merger with other bank in order to avoids similar fate. US goverment must swallow saliva personally. US country of economic superpower beforehand refused to entry of investment property of the foreign government (sovereign wealth fund/SFW) to financial agency and other strategic sector in country—because pressure of the nationalism sentiment inside— currently must beg to foreign banks to acquire or become to national partner of banks merger because of liquidity crisis.
Fall of big Wall Street—series from credit crisis stalled housing since July 2007— triggered concernoccurrence of domino effect guided to bankruptcy spiral of all financial system global. In England, as far as this is concerned two English banks kolaps, HBOS and Halifax Bank. Fall of foundation of Wall Street finance also had an impact very destructive in US economy, the financial market, and the global economy.
Stock Exchange experienced biggest fall since incident of terrorist's attack to World Trade Center, on September 11 2001. Achievement for last 10 years then vanished with index of Standard & Poor’s descended under level in 1998. Till yesterday, share from various sectors in an accross manner board continued to fall, was followed the index in stock exchanges all over the world.
Analyst's warned, crisis entered period that was increasingly dangerous with almost paralysed promissory note market because of investor in various corners of world panicked fought moved money to safer instrument, like T-bills and gold.
Liquidity crisis, that was combined with crisis of confidence also made the interest of loan for sector of corporation soar, made difficulty business world finance their everyday operation activity. Interest of short-term loan (overnight) could jump as far as 8.5 percent, on Thursday, before descending back to 2 percent pascaintervensi developed countries central banks.
Situation in Wall Street from hour to hour and day after daywas very fast with effect ramifikasi was wide all through corner of the world made was not a single dared to forecast what will happen in future. Several analysts, including former Chief Fed Alan Greenspan predicted will have again financial company big other in Wall Street would kolaps.
Bankrupt
The Fed and US government has taken several steps to restore market belief. Apart from facilitating takeover of financial agency kolaps with other company, Fed also widened collateral kind for Fed loan. With this facilities, was enabled by financial agency guaranteed share to get funding facilities of Fed emergency loan.
US government will also increase valuable letters government in periodic auction carried out by government. With pressure, Fed also succeeded in forcing 10 banks to be biggest merger for assembled fund with a value of 70 billion US dollar as source of liquidity emergency be used financial agency short-term liquidity difficulty. Securitas commission and Share also dismissed rule banned practice of transaction short selling.
However, as far concerned all these efforts failed to make market convincing. Fall price of share was just kept after circle developed countries central bank carried out intervention pumping liquidity with a value of 180 billion US dollar to global money market in an effort to alleviate liquidity crisis dealt with Wall Street. However, analysts believed in his effect only will be temporary.
Falling off of Wall Street institution shows fragility of foundation US capitalism system with Wall Street as leader. Crisis was resulting from combination hazard spirit extraordinary in Wall Street financial industry and attitude closed eyes in authority financial market, FED, but also US government uptil engrosseded in flirting with big boy in Wall Street.
Posts
0 komentar:
Post a Comment