Thank you for sharing!

Your article was successfully shared with the contacts you provided.

We could go on ad infinitum about the recent events taking place in financial markets today–the causes of the credit crisis, why the stock market continues to fall, the long-term impact this crisis will have on the economy and how (and when) it will be resolved. In fact, the story has been told and retold in every newspaper, online blog and TV program over the past few weeks. October comprised a string of historical events, the most pronounced being the worst weekly loss in the history of the Dow Jones industrial average (down 18%).

In an attempt to simplify what has transpired, the violent activity we have experienced in the stock market can be seen as a reaction to the severe tightening in the credit markets. It is as if the stock market has become a lens for the public eye on what is happening in the credit markets–the public sees and understands the Dow Jones activity but doesn’t see the lending activity that goes on among banks and financial institutions around the world. As banks worldwide continue to refuse to lend to other banks, companies cannot get the funding needed to sustain day-to-day business. Investors translate this into potential earning losses down the road and thus, sell shares.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.