- *Stocks tumble
The Dow has fallen nearly 200 points in just the first few minutes of trading. The news is that BNP Paribas, France's biggest bank, stopped withdrawals from three investment funds because of volatility in the U.S. asset-backed securities market. Not helping is that the Web site of the German newspaper the Frankfurter Allgemeine Zeitung said this morning that German state lender West LB could have major exposure to the U.S. subprime market. West LB said its exposure was limited. Of course, reality (whatever the reality is) gets drowned out by fear, in this case the idea that anyone - including big institutions - can't get money when they need it. The European Central Bank is providing more cash to money markets , which has only added to the jitters. Here's an AP story, but best to keep an eye on CNBC today.
*Update: Stocks are recovering a bit 90 minutes in the session. The Dow is down about 140 points.
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| 05:45 AM Aug 9, 2007 | Email the Daily Dragon | Email this Article | Post Comments |
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