The turmoil on the world financial markets continue. Now, the trouble moves to Europe. The troubled Fortis NV, goes looking for help now with the Netherlands, Belgium and Luxembourg agreed to inject €11.2 billion ($16.37 billion) into Fortis NV on Sunday, after France's BNP Paribas SA and Dutch financial firm ING Groep NV walked away from talks to acquire the company over the weekend. The rescue effort came after Fortis's shares came under heavy selling last week.
The story was the same in the UK as, mortgage lender Bradford & Bingley PLC, which helped fuel a property boom in Britain, was in the process of being nationalized, in what would be the second British bank to be taken under government control this year.
That is not the end, lets move to Germany, Hypo Real Estate Group is in difficulty due to the international credit-market turmoil, according to a senior German official, and German banks and authorities were in talks late Sunday about a possible rescue of the Munich-based lender.
That is how this nightmare is turning out for the once mighty financial institutions. There is going to be more of it.
Coming to the Indian markets, the bottomless pit is likely to continue in coming week. We are well below 4000 and any up move will see more selling coming in, with the once mighty FII's in a hurry to cash in on whatever is left of their investments.
For the investors out there, keep some cash handy, get some gold in the meantime, and be ready to stock your investment portfolio for cheap as the markets tumble more.
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