Confidence on Wall Street has taken another blow following the US government's bail out of the troubled insurance giant AIG.
The $85 billion dollar rescue package failed to calm investors' nerves. The Dow Jones index finished just over four percent down, only days after a similar slump, triggered by the collapse of the Lehman Brothers investment bank. Other major US stock indices also dropped between four and five percent, as investors shifted to low risk assets such as government debt and commodities. U.S. crude oil prices jumped six dollars to settle at just over 97 dollars a barrel, and gold jumped nine percent, its biggest one-day gain in eight years.
(Deutsche Welle)
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