After a prolonged wait for embattled investors who bought into Lehman linked products, their worst fears have been confirmed.

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Stock markets are now entering a period of painful decline as countries around the world face up to the prospect of recession. While interbank lending has eased tentatively as central banks’ measures to inject cash loans to banks unblocked the credit crunch, investors have little time to absorb the good news.

The financial storm continues, albeit with less ferocity as compared to last week (eight consecutive sessions of losses). It is still a roller-coaster ride, so don’t plunge in and exhaust all your resources just yet.
1. UK government pumped £37bn into Royal Bank of Scotland, Lloyds TSB and HBOS.
2. Citigroup reports $2.8 billion loss.
3. Merrill Lynch […]

A whooping $2.4 trillion in market value was wiped off on Wall Street and many investors were rattled by this self-feeding frenzy. Billions of dollars were withdrawn from equities as investors scurried into havens like bonds and Treasury bills. Global markets fell like nine-pins too, with the Japanese Nikkei and London FTSE crashing about 10%.

This is not the time to write lengthy posts after the carnage we have witnessed in global stock markets. I believe nobody is in the mood to read market analysis. A picture speaks a thousand words. Just look at this web of deceit, er, leverage that has caused Dow Jones, S&P 500 to post worst […]

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