Well of course the Fat Lady is Hospitalized... Do you understand how much Singing you have been having her do?
I am surprised she is still alive! ;-) On Oct 10, 11:28 am, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Firestorm sweeps world markets > Marc Moncrief and Michelle Grattan > October 11, 2008 > > Illustration: Ron Tandberg > NOT for more than 20 years have Australian shareholders seen a day as > bleak as yesterday, as more than $90 billion was torn out of the > sharemarket as crisis meetings of the world's financial leaders began > in Washington. > > In a rout that spanned the globe, the value of Australia's largest 200 > companies, as measured on the S&P/ASX 200 Index, fell below $1 > trillion for the first time since 2006. > > It was the worst percentage hit to Australian shares since the crash > of 1987. Hedge fund manager Tom Elliot called it "capitulation day". > > Meanwhile, the domestic row over what should be done sharpened, with > Opposition Leader Malcolm Turnbull calling for the Government to > guarantee bank deposits at least up to $100,000; extend from $4 > billion to $10 billion the funding it is injecting for home loans by > small lenders; and delay the start of the planned emissions trading > scheme. > > Prime Minister Kevin Rudd reassured depositors that everything > necessary was being done and the system remained strong. The > Government has had in train for some time a proposed scheme to > guarantee deposits up to $20,000, which would cover 85% of depositors. > > Mr Rudd also moved to curb the backlash stirred when he left open the > possibility of deferring a rise in the base pension beyond the May > budget. He promised yesterday the Government would give assistance to > pensioners by the budget. > > The rout took place as the International Monetary Fund and the > Financial Stability Forum held an emergency meeting of officials from > 27 countries to discuss the crisis. > > The IMF's first deputy managing director, John Lipsky, said the > meeting would help emerging economies such as China cope with the > pressures caused by the turmoil. > > President Bush was due to make a televised address overnight to soothe > upheaval on financial markets. He will meet with finance ministers > from the G7 on the weekend. > > As he prepared for a separate meeting of finance ministers from the > G20 (which includes developing countries), Treasurer Wayne Swan said > it was vital for advanced and developing countries to come together > because the crisis was "also now impacting on developing economies and > slowing world growth". > > Mr Swan said being "at the epicentre of this global firestorm" > underscored to him that the key challenge was to restore confidence on > a global basis. > > Co-ordinated action would be needed across a range of areas, going > beyond interest rates, with developed and developing countries working > together. > > Mr Rudd said the G20 meeting, called this week by US Treasury > Secretary Henry Paulson, was "critical to deal with the challenge of > long-term regulatory change to the financial system. > > "That's in turn critical to restoring confidence to markets, and > that's where Australia and the United States are working closely > together," he said. > > After a dramatic week on the world's investment markets and desperate, > co-ordinated action by central banks, investors had hoped Thursday > would bring some calm. > > New York's Dow Jones Industrial Average - a benchmark of US shares - > began the day with positive momentum, but plummeted in the last two > hours of trading. The index lost a phenomenal 7.3% on the day, closing > below 9000 points for the first time since 2003. > > The pessimism spread from Wall Street to Australia and on to Asia. > Japan's Nikkei 225 Average lost 9.6% on the day and Hong Kong's Hang > Seng Index fell by 7.2%. London's FTSE 100 fell 10% the moment it > opened. > > Yesterday's 8.3% gutting of Australia's share index capped a three- > week drubbing that has slashed about $260 billion from the value of > the nation's top 200 companies. > > The US and Britain appear to be converging on a blueprint for stemming > the financial chaos as they prepare for the crucial talks of financial > leaders in Washington that the White House hopes will result in a more > co-ordinated response. > > The British and American plans, though far from identical, have two > common elements: injection of government money into banks in return > for ownership stakes, and government guarantees of repayment for > various types of interbank loans. > > There is a growing consensus that the crisis is so fast-moving and > harmful that it demands an unprecedented degree of worldwide co- > ordination. > > British Prime Minister Gordon Brown made the case, in a letter to > French President Nicolas Sarkozy, for another option gaining favour > among economists - guaranteeing short and medium-term loans between > banks - to jump-start the banks' lending. > > The White House confirmed that the US Treasury Department was > considering taking ownership positions in banks as part of its $US700 > billion rescue package. But officials said the idea was less developed > than the plan to buy distressed assets from banks through "reverse > auctions". > > The goal, Treasury officials said, was a plan that would be broadly > available to all banks, rather than through specific rescue packages > negotiated case by case. > > Direct injections of cash would be for comparatively healthy banks. If > a bank is failing and needs to be rescued or shut down, the Federal > Deposit Insurance Corp would handle it through its own procedures. > > The Treasury proposal to recapitalise banks stems from the realisation > that as the sharemarket keeps tumbling, and as mortgage-related > securities on banks' balance sheets also plummet, it has become harder > for banks to raise fresh capital from investors. > > It is far from clear that other countries will accept the need for > wholesale recapitalisation of the banks. Even if they did, neither the > British nor the American plan would necessarily be a template. > > Mr Swan expressed his confidence that Australia was "better placed > than almost any other developed economy" to withstand the fallout. > Addressing the Brookings Institute in Washington, he said: "We have > one of the strongest financial sectors in the world." > > He called for international co-operation to improve global regulation. > "The answer lies not in more or less regulation, but in better > regulation," he said. > > With AGENCIES, ANNE DAVIES --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
