One of the most stunning government bailouts in American history failed on Wednesday to stem the runaway fears engulfing the global financial system.
Investors embarked on a frenzied flight to safety on Wednesday, just hours after the Federal Reserve and the Treasury Department propped up American International Group, the ailing insurance giant, with an $85 billion loan. And many wondered which once-proud institution would be the next to fail.
“There’s a growing sense that there’s no end to this in sight,” Edward Yardeni, the investment strategist, said…
Stress showed in all sectors of the global financial system. The cost of insuring corporate bonds spiraled higher, particularly for Morgan Stanley and Goldman Sachs, venerable investment banks that are commonly considered among Wall Street’s strongest brands.
“These are levels we haven’t seen before for these names,” Dave Klein, a manager at Credit Derivatives Research, said.
And the Boston Globe reports:
As they tussle over who can best fix the faltering economy, a new poll taken during the current Wall Street turmoil found that voters have somewhat more confidence in Barack Obama than John McCain, though neither gets very high marks.
The findings from the New York Times/CBS News poll, posted online this afternoon, said that about six in 10 voters say they’re very or somewhat confident in Obama’s ability to make the right decisions about the economy, while only 53 percent as are confident in McCain’s ability.
The poll uncovered stark pessimism about the direction of the economy — nearly 80 percent rated economic conditions as negative and 6 in 10 said is getting worse. One in 3 say their family is worse off today that it was four years ago — a higher percentage than leading up to the last presidential election in 2004.