NZ market hit by US meltdown
17/03/2008 15:04:01
The New Zealand Stock Exchange has taken a hit, sliding almost two percent on the back of investor fears that more financial institutions could become casualties in the widening US financial crisis.
One of the major US investment banks’, Bear Stearns, cash reserves were drained by fleeing customers prompting its sale at a rock bottom price to JP Morgan Chase and Company.
Stock broker Chris Lee says the repercussions of the Bear Stearns situation is being felt in New Zealand - but banks operating here are not in trouble.
He says New Zealand banks will have much bigger write offs over the next couple of years, but he does not see any of them falling over or coming anywhere near falling over.
Mr Lee says the banking system in New Zealand and in Australia are in much better shape than the rest of the world.
That's because they are selling commodities *to* China, not just buying Wal*Mart Sh*t *from* China.
D* Y*u see st*rs?
Cheers!
They all say that - "we're OK it's those other guys that have problems" !
UK's been saying that for months, for example.