Thursday, October 23, 2008

Financial Crisis - Goes regional, triggers a real economy shock!

The financial crisis is not becoming real economy crisis in an explosive war-like situation. I wish to highlight the first (noticeable) explosions showing crisis moving regional and hitting the real economy. As always all links refer to Nakedcapitalism.com (one of my favourite blogs).
This was the result of financial crisis (among others)
Regional Banks post losses
Biggest US Bank Wachovia shows off a BIG loss!

And now here is the quote that ignites the real economy wick!

Ohio’s largest banks all suffered losses. National City said it planned to cut
about 4,000 jobs, or 14 per cent of its workforce, over the next three years
after the bank posted a net loss of $729m, or 85 cents a share. Fifth Third
reported a quarterly loss of $56m, or 61 cents per share, and KeyCorp lost $36m,
or 10 cents per share.

This is phase 2 of the crisis. The repurcussions will move east geographically towards China in coming months. Holt on tight.