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Saturday, September 20, 2008
World Markets Going Haywire
World financial markets went haywire this week due to widespread ffears stemming from the instability of Wall St. this week. The Dow Jones Industrial Index plunged over 500 points Monday, rebounded slightly on Tuesday then plummeted an additional 450 points Wednesday only to receive modest gains the next two days to end down a little over 100 points for the week. In addition to market instability, the closings of Lehman Brothers and the sale of Merrill Lynch will displace thousands of workers on Wall St. alone as well as thousands more across the country and the world. With unemployment rates rising over 6% already, the job market is tightening and will likely lead to additional cross-board cuts as the quarter rolls on.
The Federal Reserve and U.S. Treasury Dept. announced a comprehensive bailout plan for the financial industry and pumped nearly $700 billion dollars of taxpayer money into the economy this past week to suture the wound. The bailout is expected to reach nearly $1 trillion soon and may eclipse that mark by months end.
Where is the United States Congress in all of this? I feel like we are shooting from the hip here.
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