Banks desconfian each other and do not lend more money with extreme reluctance and very high rates. Central banks (Federal Reserve, European Central Bank, Bank of Japan, Bank of England) are massive and made available to banks (in the form of loans) over 400 million euros in cash (dollars, pounds, euros or yen ). The fears of the market then spreads to all credit transactions. The value of the shares of the funds involved in the real estate credit (including “subprime”, but also loans to creditworthy borrowers) collapse. The value of the shares of banking groups are too. To offset their losses in these markets, large investors began selling shares in other sectors. These sales led to a general decline in stock prices. The panic spreads. The currency crisis has become a crisis that affects not only stock Wall Street, but Europe and Asia.
9 August 2007: The French investment bank BNP Paribas announced that it will not be able to take money from two of its funds, as it can not value the assets in them due to a lack of liquidity in the banking market. It is the first sign that banks are refusing to do business with each other. The European Central Bank introduces 95bn euros ( 63bn) into the banking market to try to improve liquidity and restore confidence. It added 108.7bn euros over the next few days. FED injected 38 billion.
August 13: The new ECB injected 48 billion euros and EDF another 38 billion. The Bank of Japan, the Swiss National Bank and the Bank of Canada took similar measures. Paris Bourse asset Management down 3.13 , Tokyo lost 2.37 and 3.71 London.
August 15: The crisis is spreading to Asia. The Nikkei index fell by 2.19 .
August 17: The Fed cuts the rate at which lends to banks by half a percentage point, to 5.75 , and warned that the lack of credit could be a risk to economic growth.
August 21: The subprime lenders in the UK begin to withdraw mortgages and raise the cost of home loans with poor credit histories.
August 30: The Federal Reserve of the United States undertakes a further capital injection of 10 billion. The total injection of 147 million dollars. The ECB has injected 250 million euros of liquidity since the beginning of the crisis ..

AFP via Yahoo! News
Oil prices fell Monday on fresh fears the worst years of global slowdown will undercut demand for energy, traders said.
USA Today
State Street dove to a 13-year Ernst low on Tuesday after the commercial bank posted a 71 decline in fourth quarter and warned of a difficult years ahead.
Party People’s Daily
China’s Angang Steel Co Ltd (Ansteel) said Wednesday net profit fell 55 percent last year, an estimated 3.42 billion yuan (about 500 million U.S. dollars ) bogie prices plunged. Ansteel, one of the top three producers of steel, the estimate in an unaudited statement to the Shenzhen Stock Exchange, where it is offered. The final figure indicates a loss of 4.83 billion yuan in …
LONDON Oil prices fell on Monday as the market is still concerned about the weak demand for energy around the world, traders said. New York main contract, light sweet crude oil for delivery in February, fell 92 cents to 35.59 dollars per barrel.
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