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Lehman Crash Triggers Global Market Tumble

US futures and dollar sink: 'It's mayhem'

By Matt Cantor,  Newser Staff

Posted Sep 15, 2008 3:40 AM CDT

(Newser) – Lehman Brothers’ bankruptcy, along with news that mammoth insurer AIG is seeking a $40 billion Federal Reserve loan, has sent European and Asian markets, US futures and the dollar sharply downward, Bloomberg reports. Swiss-based UBS AG, Europe’s bank most hurt by the subprime crisis, plunged 7.2%. Australia’s biggest investment bank, Macquarie, fell 10%, and S&P futures expiring in December fell 2.9%.

Meanwhile, stock indexes dropped over 3% in France, Spain, Taiwan, the Philippines and India—and the dollar fell 1.9% against the yen. “The global credit crisis has permeated through all markets,” said an analyst. Europe’s Dow Jones index dropped 2.7% and the MSCI Asia Pacific, excluding Japan, sank 1.5%. “It’s mayhem,” said an expert. "If you thought the US economy was slowing, that fear has been amplified, with implications for global economic activity."

News of Lehman Brothers' bankruptcy has troubled markets worldwide.
News of Lehman Brothers' bankruptcy has troubled markets worldwide.   (AP Photo/Katsumi Kasahara)
A commuter walks past an electronic display showing the British FTSE 100 share index, in London, Monday, Sept. 15, 2008.
A commuter walks past an electronic display showing the British FTSE 100 share index, in London, Monday, Sept. 15, 2008.   (AP Photo/Alastair Grant)
People leave the Lehman Brothers headquarters on 7th Ave. in New York City carrying personal belongings as they clear their offices Sunday, Sept. 14, 2008.
People leave the Lehman Brothers headquarters on 7th Ave. in New York City carrying personal belongings as they clear their offices Sunday, Sept. 14, 2008.   (AP Photo/David Karp)
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