he US is in turmoil as some of Wall Street`s oldest and biggest firms are falling like ninepins. The real estate credit crunch in the US is threatening to become a full-blown financial crisis and the Federal Reserve is acting in full swing to avert any major collapse of the global financial system.
With the blessings of US Federal Reserve, either the financial biggies are being bailed out or they are taken over by their peers. The exception being Lehman Brothers who could not find a partner to infuse funds and eventually went bankrupt.
Investors are waiting with baited breath as the list is swelling day by day. Market talk is that some more financial majors may also meet the fate of Fannie and Freddie, Merrill & AIG.
$500 billion has already been wiped out arising out of the losses relating to the US sub-prime mortgage woes. IMF forecast says the losses may touch $1 trillion.Image: A Wall Street sign on the New York Stock Exchange.
Also see: Special: Lehman Brothers goes bankrupt
| US turmoil and its impact in India
| Lehman Brothers files for bankruptcyText compiled by V.R. Vinod KumarImages: Copyright AFP. Any unauthorised reproduction is prohibited.