Financial Tsunami Struck US, Will It Spare the World?

Wall Street, the US financial hub has never seen such turmoil and uncertainty in last many years after 1920s worst recession. Lehman Brother (the biggest financial players) filed for bankruptcy; Bank of America is buying Merrill Lynch in USD 50 bill. Merrill Lynch buy out is as surprising as Lehman Brothers filing for bankruptcy. AIG is considered to be one of the leading insurance company of the world, already asking Federal Reserve for the bail out package of USD 50 bill. Citi Group, Goldman S and JP Morgan have formed a contingency fund worth USD 70 bill to rescue in case of SOS. Financial crisis is due to excessive loans from banks that lead to defaults, housing and mortgage loans were also excessive, people borrowed beyond capacity. It badly affected the financial sector. US housing crisis is deepening, economic slow down is seen all across. US is one of the global demand driver and consumers of products, if US slows down, world is going to feel the pinch, especially the third world. It seems that slow down is coming, oil price fall is an indicator of slowing down in overall demand. Is Tsunami over or it is going to engulf whole world? Let’s see, time will tell.