Worldwide, investors started to panic after yet another financial institution announced it had lost money because of the low-end "subprime" US mortgage market and its widespread effect on the US credit market.This time the alarm was sounded by France's largest bank, BNP Paribas, which froze three funds with subprime connections. BNP said the funds could not be properly valued because of the "complete evaporation" of liquidity in some parts of the market.
More on theage.com.au
and on CNN-Money:"Wall Street: down but not out!
Major gauges cut losses but still end in the red for day 2 as investors weigh Fed's $38 billion infusion into the banking system. Worries remain about tightening credit, subprime mortgage market."