The ambitious 700 Billion Dollar
Bailout package was supposed to be the answer. American Politicians sat through
the night and went through every single line of this proposed plan in an effort
to save the lending arm of our financial system: The Banks. They went ahead and announced that they had reached a
plan that would allow the money to flow into the US Markets and trickle on to
the rest of the world. Strategically announced before the Australian markets opened,
it was supposed to bring back a certain amount of confidence. This certainly
didn’t happen because markets across the board were hammered today leaving many
scratching their heads. Our Sensex was one of the biggest losers.
The weekend gone by witnessed the collapse of Bear Stearns in a shocking deal in which the 85-year-old US-based investment bank was bought for only one third its IPO price in 1985. The US Federal Reserve cut interest rates in a meek attempt to restore confidence in the financial markets. This led to widespread speculations of global funds pulling out their local share holdings. The panic-struck Sensex plummeted in the face of intensifying global fears. And the rupee plunged to a six-month low.
The ambitious 700 Billion Dollar
Bailout package was supposed to be the answer. American Politicians sat through
the night and went through every single line of this proposed plan in an effort
to save the lending arm of our financial system: The Banks. They went ahead and announced that they had reached a
plan that would allow the money to flow into the US Markets and trickle on to
the rest of the world. Strategically announced before the Australian markets opened,
it was supposed to bring back a certain amount of confidence. This certainly
didn’t happen because markets across the board were hammered today leaving many
scratching their heads. Our Sensex was one of the biggest losers. 
