As expected the bankruptcy filing by U.S. investment bank Lehman Brothers has rattled the global markets. The S&P/TSX composite index was down 402.59 points but has recovered somewhat t0 12,546.16.
European and Asian stock markets tumbled as well as investors reacted with alarm to the Lehman bankruptcy, as well as to the takeover of Merrill Lynch.
A global consortium of banks late Sunday announced a $70-billion US pool of funds to lend to ailing financial companies, a move geared toward preventing a worldwide panic on stock and other financial exchanges. The U.S. Federal Reserve chipped in with more largesse in its emergency lending program for investment banks.
The devaluing has to occur. As I said before this ride will not be over at least until the markets get back to where they were in 2002.
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