An electric stock board outside a securities company in Tokyo, Thursday, reflects the Nikkei 225 Index's fall, as renewed concerns about the health of the U.S. financial sector prompted a regional selloff.
That's not half-bad compared to: The Shanghai Composite Index fell 192.24 points, or 6.54%, to close at 2748.87, a fresh 16-month low extending a weeks-long slide that has seen the index drop 20% this month and nearly 50% so far in 2008. Thursday's decline also sent a jolting reminder of Shanghai's recent volatility, coming just a day after the index jumped 5.24%.
Down 6.54% in one day, 20% this month, and 50% just in 2008. Sad, and scary.
Lehman Brothers warned the markets ahead of time about a $2.8 billion loss, and on that conference call boldly proclaimed that the capital it raised would be used for taking more risk, and not "to use the proceeds to further decrease leverage.”
This is a dynamic American firm, eh? I'd say Fuld will be gone next quarter, and Lehman taken over soon after.