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Comment (GLOBAL equities plunged and the Australian dollar lost US3c yesterday.
The problems engulfing European banks heightened fears that Washington's $US700 billion ($935 billion) Wall Street bailout would do little to soften the economic downturn unleashed by the global credit crisis.
The German Government's E50 billion bailout of Munich-based Hypo Real Estate Bank, coupled with talk that Europe could mount its own bailout of distressed financial institutions, sent shares sharply lower across Asia and continued in European trading last night.
Meanwhile, the Australian dollar had its biggest fall in 2008 so far, slumping to a two-year low of US74.97c, as traders priced in more interest rate cuts and commodities continued to lose favour among investors on concerns over slowing growth in the US and China.
In Australia, the benchmark S&P/ASX 200 index fell 155 points, or 3.3 per cent, yesterday to 4540.4 -- its lowest close since late 2005 and th...
