Crisis: Global Stock Markets Continue Fall

Is anyone saying what needs to be said to stave off disaster? Have Congress, the White House and Wall St. big shots sat down to blue print a crisis plan? Have the presidential candidates stopped talking about tax cuts and called for a full economic war footing to stave off the invasion of depression? There was much more concern and preparedness done in the wake of hurricane Ike. There shouldn't be anything else on TV other the economic crisis. Anna Nicole's death got more coverage that this Wall St. meltdown.

Losses on stock markets have continued after the collapse of fourth largest US investment bank, Lehman Brothers, which has filed for bankruptcy protection.

European stocks fell again; the UK's FTSE 100 was down 4.4%, France's Cac down 2.9% and Germany's Dax down 3.2%.

Shares in Japan, South Korea and Hong Kong fell more than 5%, having been shut on Monday for public holidays.

Lehman, which may be about to sell its core assets to Barclays, is the latest victim of the global credit crunch.

The FTSE 100 of leading UK shares fell 1230 points to 4,975 in early afternoon trade. Banking shares were particularly hard hit, with HBOS shares 35% lower.

Japan's benchmark Nikkei 225 index dropped 5% to a three-year low, shares in South Korea and Hong Kong shed almost 6% in value and Shanghai's index fell by about 3%.

Markets in Taipei and Singapore were also sharply down, and the pattern was repeated in Australia and New Zealand, although the falls were smaller.

The US stock market on Monday had its worst day's trading since 9/11, with the Dow Jones index ending the day down 504.48 points, or 4.42%, at 10,917.51.

Central banks around the world have been carrying out emergency measures on Tuesday to keep markets liquid.

The moves came as the interest rates at which banks lend to each other rocketed - as they did at the start of the credit crunch. This is seen as a sign of falling confidence between the banks.

Overnight sterling Libor increased from 5.5% to 6.8%, and the dollar Libor rate increased from 3.1% to 6.4%.

The Federal Reserve said it was set to make a "large" injection of liquidity to help stressed financial markets[...]