Men of Words

AIG, Merrill Lynch and Lehman Brothers

Within the past week, the world witnessed shocking drama on Wall Street.

Lehman Brothers filed for bankruptcy, aged 150.

Merrill Lynch sold itself to Bank of America at the age of 94.

As both events occurred on Monday, AIG seemed near to collapse under financial pressure.

No one must have envisaged one day that these banking giants would fail and one of the world’s largest insurance corporation on the verge of bankruptcy. Not until the collapse of Bear Stearns. Banks worldwide have suffered more than $500 billion of write-downs and loan losses since the global credit crisis began more than a year ago.

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Tags: AIG, economy crisis, global financial crisis, Lehman Brothers, Merrill Lynch, subprime mortgage crisis

Where is the world economy heading?

Failure of IndyMac Bank, the following collateral damage to Freddie Mac (Federal Home Loan Mortgage Corporation) and Fannie Mae (Federal National Mortgage Association), the weakening US dollar, Wall Street’s straight fall, global stocks continues south, weakening sentiments and confidence of investors and consumers around the world.

I guess that kind of sums up the major economy climate across the world for the past week. I have not seen such huge economic corrections of such magnitude that has brought the whole world into a cloud of poor sentiments and uncertainty. I’d say that the current economy crisis is unprecedented in recent years.

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Tags: economy, global financial crisis, global inflation crisis, global recession, price hike, subprime mortgage crisis, US