Market update

Well well, it’s been quite a week. We’ve seen a meltdown in the financial markets that has unsettled even the most experienced players. In fact, it took on such proportions that there was a very real, systemic risk of the whole financial system breaking down. Not surprisingly, this has triggered a global response from governments. After the US took the initiative in announcing measures, it now seems that the UK has initiated the right response in buying stakes in the troubled banks, forcing them to own up to a much larger figure of cash needed than they previously communicated.

Financial Markets in new meltdown

Today was another day of mayhem on the stock exchanges. The CAC- 40, the French stock market index, lost 9% of it's value which is the largest one-day-drop ever. Both the FTSE and the DAX are down 7% and Asia closed this morning showing losses of between 4% and 6%. As I write this, the DOW trades 780 points or 7.6% lower. On such a day, or rather a series of days with extreme uncertainty ranging to panic, it won't come as a surprise that fine wine prices are coming down as well.