I've never really taken any interest in stock markets. Some of my ex-colleagues would buy and sell stocks and shares and then track their progress. They'd gain the odd windfall here and loose out elsewhere. I saw that as a form of gambling which is something that has never interested me at all.
These days though we are all so badly affected by what is happening in the world's financial markets. The rate of exchange, the ability to sell or buy a house and the vulnerability of our savings means we can no longer ignore what is going on in the heady world of finance. When the tightened belt starts to cut into your waist you have to sit up and take notice.
It seems that, in the world of finance, there is no good news, only bad and for today...
The American banking system is facing meltdown following the collapse of the Lehman Brothers, one of the world’s biggest investment banks. At the same time, Merrill Lynch was rescued by the Bank of America.
Lehman's problems were caused by its exposure to the American mortgage market. The treasury has already rescued Bear Stearns and the two largest mortgage lenders Fannie Mae and Freddie Mac were nationalised just over a week ago. In the case of the Lehman Brothers though the US Treasury refused to act.
Today we will see the fallout from this as the stock markets throughout the world react to the news. You can't help but feel that things are not going to get better in the world's money markets within the near future and that is bad for all of us.
I just hope I can buy a larger belt.
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