Gold Surges as Investors Look for Safe Haven
With failing confidence in the financial system and an uncertain future for crude prices, gold returns to the safe hedge spotlight.
Morgan Stanley, Goldman Sachs Shares Plunge
The two biggest U.S. securities firms tumbled after a government rescue plan for AIG failed to ease the credit contraction. Goldman fell as much as 23 percent on the New York Stock Exchange and Morgan Stanley plunged 44 percent, leading financial stocks to the lowest level in five years.
Russian Bourses Halt Trading
Russia’s two main bourses, RTS and MICEX, said on Wednesday they were suspending trade until further notice from the state’s main market regulator as shares continued to tumble one day after their steepest decline in more than a decade.
US Treasury Raises Fed Funding
Dealing with fears that the US central bank’s balance sheet is overstretched following the AIG loan, the US Treasury announces it is creating a supplemental funding program.
LIBOR Rate Climbs
The London Interbank (LIBOR) rose more than 3% today as concern over further bank failures rippled through the markets. The LIBOR is the primary benchmark rate for commercial loans so today’s move will force lending rates higher in an already tight credit environment.
U.S. Housing Starts Fall 6% in August
Further bad news for the housing market was confirmed as the August New Housing Starts report showed a 6.2% decline from the previous month.
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