Credit jitters return to Markets, American Housing slump may spark a recession

Credit jitters return to markets

The losses followed several days of gains on world marketsAsian shares headed lower as global credit worries re-emerged ahead of key US homes sales figures later on Friday.



Meanwhile, comments from Countrywide Financial - America's biggest mortgage lender - that a housing slump may spark a recession also knocked sentiment.



In China, shares were also hit as three banks said they were more exposed than thought to the US sub-prime crisis.



World markets have been in turmoil recently amid fears of a possible credit crunch in the US.
In Japan, the benchmark Nikkei index closed 67.35 points lower at 16,248.97, while the Hong Kong Hang Seng was 184.58 points down at 22,782.39 in lunchtime trade.





Read More:-





http://news.bbc.co.uk/1/hi/business/6961602.stm





from the BBC News Website:



Comment:


Today, some analysts are saying that a Global Recession is possible, due to the knock effects of the American Sub Prime Crisis. I believe that we as Christians need to trust the Lord is these days, more than we trusted Him in the past:





Blessings





Blair

Please comment:

More Problems in the Financial Markets

Emergency bank loan creates fears

Short-term traders are waiting to see whether markets will recover A row between Barclays and HSBC over the use of an emergency lending facility has shown how fragile market confidence has become.

On Monday, Barclays borrowed £314m from the Bank of England, fuelling fears that the bank was in trouble.

To calm the market, Barclays said its hands were tied after HSBC missed a deadline to transfer funds to their account, the Financial Times reported.

HSBC says Barclays' request was made too late for it to be honoured.

Interbank payments in the UK must be paid by 16:20BST and it is understood that Barclays made the loan request to HSBC too close to this cut-off point for HSBC to deliver the funds.
Fragile confidence

Under normal market conditions, a commercial bank tapping into the Bank of England's credit facility for a relatively small amount to balance its books at the end of a trading day would not have created much attention, say analysts.

This financing option is generally used a few times a month. As it is an emergency facility, it attracts a higher rate of interest - 1% above the base rate.

It is believed that the bank's emergency loan was not connected to the problems affecting much of the financial system.

Read More:

http://news.bbc.co.uk/1/hi/business/6960171.stm from the BBC News Story

We're currently seeing some problems in the World Financial Markets, due to the crisis in the American Sub-Prime Market, could this problem stabilise or could we see a World Wide Depression ? In both scenarios, how we do respond as Christians ?

Please comment:

Blessings

Blair