Friday, October 3, 2008

The worst financial crisis since 1929 - or ever?

The latest headlines on Yahoo! Finance best describes the financial crisis and economic recession the US is facing:

  • Stocks decline on unemployment, factory reports
  • Tighter credit begins to hit manufacturing, jobs
  • Financial companies borrow record amount from Fed
  • House leaders win key converts on bailout bill
  • Financial crisis moves from Wall St to the mall

On the same day the Dow declined 348 points or 3.22% to 10,482. It has fallen by more than 27% since it reahed 14,280 earlier this year. And there are signs showing it could fall further.

The FTSE/JSE All Share Index, which reached a record 33,310 on 22 May on the back of booming commodity prices, has fallen sharply to 22,561 yesterday, a 32% fall. The mining heavyweights, Anglo American and BHP Billiton, have halved in value.

Some analysts say we are in the worst financial crisis since the great depression in 1929 - 1932. Probably the worst financial crisis in the modern history?

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