West's Financial Crisis

 

Last week has seen some dramatic movements in the financial markets across the globe, specially US & Britain. Though Washington managed somehow to save its face, the global response to the critical issue has been frightening. Wall Street or Dalal Street, there were few exceptions who were lucky to keep the adverse impact at bay. S&P revised US's credit rating for first time in history, one notch down to AA+ from AAA. The tremors have been felt far & wide.

Approximately a total of $ 2.5 trillion were eroded from the value of stock markets across the globe.

Already fighting with its internal financial turbulence, European markets took the worst hit. German market witnessed a free fall with DAX dropping 10% from year's high. Billions were eroded from Britain's super wealthy with steel tycoon Mr.Mittal taking the worst hit of about 2.16 billion ponds, and just to reiterate, all that within a week.

The fears of another meltdown have stuck the market hard. Raising the debit limit is one thing, but the fact is that US still remains under debt accumulated by the former presidents, most significantly during war torn period under the Bush regime. The rating agencies are speculative and market stressed.