The world is passing through financial crisis. In United States, Lehman Brothers has filed for bankruptcy protection. The largest insurance company in world, AIG had to be rescued by the US government by giving $ 80bn. It was feared that AIG may not survive after the demise of Lehman Brothers which had suffered huge losses in mortgage. The two largest mortgage companies Fannie Mae and Freddie Mac were also rescued by the US government by injecting money. There are speculations that Morgan Stanley and Washington Mutual may also be in difficulties.
The stock markets worldwide are jittery because of the prevailing situation. Russian government had to suspend trading in its main stock exchange in order to avoid sharp decrease in share prices. If more companies meet the same fate as Lehman Brothers, it is feared that the crisis will deepen. Obviously the US government cannot inject money in each company.
The world is passing through financial crisis. In United States, Lehman Brothers has filed for bankruptcy protection. The largest insurance company in world, AIG had to be rescued by the US government by giving $ 80bn. It was feared that AIG may not survive after the demise of Lehman Brothers which had suffered huge losses in mortgage. The two largest mortgage companies Fannie Mae and Freddie Mac were also rescued by the US government by injecting money. There are speculations that Morgan Stanley and Washington Mutual may also be in difficulties.
The stock markets worldwide are jittery because of the prevailing situation. Russian government had to suspend trading in its main stock exchange in order to avoid sharp decrease in share prices. If more companies meet the same fate as Lehman Brothers, it is feared that the crisis will deepen. Obviously the US government cannot inject money in each company.
Related
