Meltdown Monday

Tutor2u Economics

15th September 2008

A day that shook the world

Lehman tips over the brink

Lehman Bros Share Price

Source: Reuters EcoWin

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Market Panic over HBoS

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HBoS ordinary share price

Source: Reuters EcoWin

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12 United Kingdom, HBOS ORD, Close, Pounds Sterling 2.325

Greenspan on the crisis

• Alan Greenspan has described the current chaos in the markets as "a once-in-a-century type of financial crisis" adding that it would inevitably have a significant impact on the global economy

AIG seeks emergency funding

Robert Peston’s Blog

“one of the world's biggest insurers, AIG, is reeling from losses on its exposure to real estate and credit default swaps, or complicated financial insurance - and, according to the New York Times, is seeking a $40bn bridging loan from the Fed.”

The US housing slide holds the key

“The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments.”

Source: New York Times

Monthly house price index Jan 2000=100

US House Prices - S&P Case-Shiller Index

S&P Case-Shiller, Chicago S&P Case-Shiller, Composite-10

S&P Case-Shiller, New York S&P Case-Shiller, San Francisco

Source: Reuters EcoWin

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Click on the headlines

Every cloud …..

Closing daily price, US dollars per barrel of oil

Brent Crude Oil Prices

Source: Reuters EcoWin

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When will rates be cut?

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Interest Rates for the Euro Zone, the UK and the USA

Euro Zone Interest Rate United States Interest Rate United Kingdom Base RateSource: Reuters EcoWin

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Bank of England Rates

Euro Zone Interest Rates

Too late to avoid a UK recession?

Overall index of consumer confidence, seasonally adjusted

UK Consumer Confidence and Base Interest Rates

Source: Bank of England and GfK Confidence Data

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5Index of Consumer Confidence

Dotted line shows long term mean

Long run average

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UK property woes

Annual percentage change in UK house prices

The Housing Recession Deepens

Source: HBOS and Nationwide Data

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FTSE 100 index (bottom pane) Average UK house price (top pane)

The Housing Boom Ends - Will Shares Follow?

Source: Reuters EcoWin

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