This one is going to run and run…

Another tumultuous day on the stock market.

The Icelandic government is desperately trying to rescue their economy. It’s not just the banks that have gone bust but the whole country. Which country is next I wonder?

Germany confused everyone by unilaterally guaranteeing all bank deposits, only a day after meeting other EU leaders and agreeing on a co-ordinated approach. Denmark and Spain have implemented similar guarantees.

The UK gov is refusing to follow Germany’s lead and guarantee all deposits – I can understand that, we can’t afford it, but it probably helped hammer the markets today.

The $700bn US bail-out appears to have failed to calm things down.

The deal to save Hypo Real Estate in Germany has failed and the Government is having to bail it out.

Shares in Fortis had to be suspended as BNP Paribas agreed to buy 75% of it. Fortis is part of the consortium (along with RBS) that bought ABN-Amro last year, so who knows what impact that will have on ABN and the other consortium members.

RBS shares dived 22% today, HBOS are 20% down. I’m very tempted to buy some and make a gain on the bounce. However, I think they’ve got farther to fall as there just isn’t any good news at the moment.

Some of the funds in my ISA are showing approx. 40% fall in value, e.g. JPM Natural Resources is down nearly 45% and Junior Oils is down 43%. Ouch! Surprised

I think a stock market bounce will happen if the UK Gov announces 100% deposit guarantees, which I don’t think it will, or can. So the only news (in my opinion) that could  cause a bounce this week will come on Thursday if the BoE cuts interest rates. So maybe I’ll keep an eye on the market tomorrow and pick some equities up cheap in the hope of a bounce on Thursday. One thing’s for certain, you need nerves of steel to buy in this environment!

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