A Few More Dominos Fall

Two more financial institutions across the Atlantic–U.K. mortgage lender Bradford & Bingley, and continental bank Fortis–tumbled over the weekend. And today, Wachovia is apparently the next casualty in the U.S., and is reportedly in talks with Citigroup, federal regulators, and the FDIC. On top of last week’s demise of mortgage-laden Washington Mutual, this is quite a string of dominos. However, the fact that a major money center back has now tumbled makes us think that we’re finally starting to see the beginning of the end.

The global economy still faces a long, drawn-out delevering, and it’s very likely that growth in the U.S. and Europe will be low or negative, and that unemployment will rise.

URLs:

http://biz.yahoo.com/ap/080929/eu_britain_bradford_bingley.html 

http://biz.yahoo.com/ap/080929/eu_netherlands_fortis.html 

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