Tuesday, March 11, 2008

Fears of insolvency crunch at both the US investment bank Bear Stearns and the mortgage giant Fannie Mae

Market panic after Bear Stearns reports

Panic swept the credit markets on reports of an insolvency crunch at both the US investment bank Bear Stearns and the mortgage giant Fannie Mae, triggering a dramatic surge in default insurance and rumours of yet another emergency rate cut by the US Federal Reserve. Financial shares plummeted on Wall Street in another day of wild trading as the markets began to fear that the $200bn (£100bn) life-line pledged by the Fed last Friday would not be enough to halt a vicious downward spiral.

Posted by jack c @ 09:07 AM (518 views)
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3 thoughts on “Fears of insolvency crunch at both the US investment bank Bear Stearns and the mortgage giant Fannie Mae

  • sold 2 rent 1 says:

    The Martin Armstrong March 22 low looms (plus or minus a few days)

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  • sold 2 rent 1 says:

    For anyone interested in Martin Armstrong here are some articles.

    The Business Cycle And the Future
    http://www.contrahour.com/contrahour/2006/06/martin_armstron.html

    A NEW GOLD WAR – The Martin Armstrong Saga. Con-man or Visionary?
    http://www.gold-eagle.com/editorials_00/batiste032700.html

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  • So… they could always print more US dollars to “help” the temporary liquidity problem? I guess a few more companies will follow up with similar liquidity problems – so the Fed uses the same bail-out plan….. Mugabe in Zimbabwe is still printing notes and holding parties….

    Are the US really going to let these 2 big institutions fall over in election year (I could be wrong, but I don’t think so).

    Perhaps another lifeline of $400bn will do?

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