Full report at http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20021009&ID=1986774
Excerpts:
European bourses were also under pressure with confidence in the entire German banking system so shaken that several top officials felt the need to try and calm the markets, to little apparent effect. And the woes are not confined to Germany.
``It smells like a financial crisis brewing for the capitalist world,'' said a trader at a U.S. primary dealer.
``Bank shares are collapsing, corporate spreads are widening, default swaps have blown out, Treasury yields are at ridiculous lows and volatility at historic highs. The signs are there if you have the stomach to see them,'' he warned.
He had been particularly alarmed by a plunge in Ford (F) bonds which saw their spread over Treasuries widen by almost 3 full percentage points on Tuesday.
``Everybody, but everybody, has some Ford paper on their books. This is not good, not good at all,'' he said.
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