Think again…
The failure of this bailout plan is affecting the world markets as well, according to the BBC.
The markets affected are:
- The UK’s FTSE 100 index was up 0.18% or 8.5 points to 4,827 by 12:00 BST, while Germany’s Dax was 0.9% lower at 5,756 and France’s Cac was down 0.2% to 3,949
- Banking shares were the biggest fallers in London, as concerns grow about how the delay in securing a US rescue deal will hit the financial system
- HBOS was down 12%, Royal Bank of Scotland was 6% lower
- Japan’s Nikkei index ended Tuesday down 4.1%, while Hong Kong’s Hang Seng rose 0.8%
- In Russia, trading was temporarily suspended on the country’s two main stock markets
- In the Republic of Ireland, the government announced that all bank deposits would be guaranteed for the next two years
- European bank Dexia has received a state bail-out, costing the Belgian, French and Luxembourg governments a combined 6.4bn euros ($9.2bn; £5bn)
So, this isn’t just an American crisis, this could very well turn into a world crisis, and from the looks of it, the crisis has already started.
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