Update: You know we’re screwed when Drudge makes his text red and flashing (as it was late this afternoon). That said, market recovered from the blinking text closed up from its Monday low, only down 370 points! (But still below 10,000)
Update: NYT: Credit crisis knocked the Dow below 9,600, the lowest point in more than five years.
Earlier: Looks like the bailout didn’t impress. But imagine if we didn’t have it.
Reuters: World stocks plunged to three-year lows on Monday as investors fled to government bonds, gold and the low-yielding yen, fearing policymakers’ efforts to contain the credit crisis might not be enough to prevent a recession.
Oil fell 4 per cent to eight-month troughs and emerging stocks tumbled 6 per cent as the worst financial crisis in 80 years spread in Europe, where more governments were forced to offer bank deposit guarantees due to a growing number of bank failures.
Panic selling of shares in Russia prompted two stock exchanges to halt trading while some banking shares in Iceland and Italy were also suspended.
In South Korea, banks were having trouble raising foreign currency funds and the government promised to give banks access to the country’s foreign exchange reserves, the world’s sixth largest at nearly $240 billion.
Despite weeks of huge liquidity injection by central banks, money markets remained tight, reflecting deep reluctance by banks to lend to each other.
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