After a rally yesterday spurned by promises of cash injections into banks, stocks stopped climbing and plateaued. The Dow lost 76.62 pts. Indexes in Japan and Hong Kong gained strong points today. Japan’s main Nikkei 225 rose by almost 14.47% amidst assurances from the govt that they would back deposits and inject funds into banks. HK guarantees $773 billion in its banks.
Paulson wants bank to deploy the capital they’ll receive from the govt. Bank of NY Mellon will oversee bailout spendings.
Plunging shares will stop consumers from spending on electronics during this holiday season. Electronics? I’m buying bikes! Manufacturers in Taiwan and Korea are expecting less demand for their products.
Recession fears grow in Europe.
Iceland got some help from Denmark and Norway. It’s asking the IMF for help so it will have to stop to defend its currency. It’s benchmark index dropped by 80% on Tuesday.
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