Barbara
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Stocks Drop Worldwide on Lehman Bankruptcy - 2008/09/15 20:23
Hi guys! Today and maybe during the entire week we will be experiencing sharp market fluctuations due to the Lehman Brothers bankruptcy  ... Let's keep an eye on that.
Stocks tumbled worldwide, the dollar fell and U.S. Treasuries surged after the bankruptcy of Lehman Brothers Holdings Inc. drove investors to the safety of government debt.
Equities dropped in Europe and Asia, led by a 25 percent tumble in HBOS Plc and a 10 percent decline in Macquarie Group Ltd. Futures on the Standard & Poor's 500 Index fell 3.7 percent as American International Group Inc. sank 37 percent. Russia's Micex Index declined 6.4 percent, leading a retreat in emerging markets.
Yields on two-year Treasury notes fell below 2 percent for the first time since April on speculation the Federal Reserve will need to lower interest rates to bolster financial institutions battered by $514 billion of credit losses and asset writedowns from the subprime-mortgage market's collapse. Gold rose 2 percent, while the dollar dropped the most in a decade against the yen and fell versus the euro, pound and Swiss franc.
The cost to protect corporate bonds from default surged as Lehman's bankruptcy, the biggest in U.S. history, and the emergency sale of Merrill Lynch & Co. to Bank of America Corp. heightened concern the subprime crisis will cause more bank failures. AIG tumbled after the New York Times reported the insurer asked the Fed for a $40 billion bridge loan.
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