My last post’s title “The panic is over” was a bit cheeky given the Dow was down an astounding 700-some points today. The crux of the matter is continued economic weakness due to slowing consumer spending. And that means more writedowns to come.
Rather than belabor this point, I will note that the monetary authorities have done everything they can think of to reflate the global economy and stave off the worst. Given their efforts, I have decided to add government responses to my list of writedown-related news. I expect to back fill on these activities back to August 2007 as time goes on.
As inflationary as government efforts are, I do anticipate further writedowns and more financial bankruptcies, but I also expect the panic-like situation we have had in the recent past to ebb.
2008 10 04 Hypo Real fights for life after rescue collapses
2008 10 05 The Citi Restraining Order and Supporting Motion
2008 10 05 BNP Paribas to Purchase Fortis’s Units in Belgium, Luxembourg
2008 10 05 Hypo Real Gets EU50 Billion Government-Led Bailout
2008 10 05 Germany Guarantees Private Deposits in Bid to Calm Bank `Panic’
2008 10 05 Denmark Guarantees Deposits in $6.4 Billion Pact
2008 10 06 BofA earnings tumble, cuts dividend
2008 10 06 Countrywide to Set Aside $8.4 Billion in Loan Aid
2008 10 07 Iceland gets $7.6b Russian loan to halt meltdown
2008 10 07 Spain announces emergency fund
2008 10 07 UK makes massive rescue plan for banks
2008 10 07 Zurich Write-Downs Total $615 Million
2008 10 08 Federal Reserve, ECB and Bank of England make emergency interest rate cuts
2008 10 08 Fed Will Lend Directly to Corporations
2008 10 08 Austria Guarantees All Deposits, Stops Short Selling
2008 10 12 Australia to guarantee bank deposits for three years: PM
2008 10 13 Manulife Discloses C$250 Million of Credit Losses
2008 10 13 Spain’s Santander Buys Sovereign for $1.9 Billion
2008 10 13 Fed Says ECB, Others to Offer Unlimited Dollar Funds
2008 10 13 Germany Pledges EU500 Billion in Bank Rescue Plan
2008 10 13 EU Nations Commit 1.3 Trillion Euros to Bank Bailouts
2008 10 15 Iceland Cuts Key Interest Rate to 12% From 15.5%
These links are compiled in my credit crisis timeline.