Global Financial markets roars

The Financial Market is becoming very unstable due to the collapse of Lehman Brothers Holdgings Inc, one of the largest financial institution globally. Top ten banks have set aside their emergency funds due to unforseen circumstances. Global financial markets were shaken to their core on Monday after Lehman Brothers filed for bankruptcy protection and Merrill Lynch agreed to be taken over as a deepening crisis took new, bigger victims. The US Federal Reserve also said for the first time it will accept stocks in exchange for cash loans and 10 of the world’s top banks agreed to establish a US$70bil emergency fund, with any one of them able to tap up to a third of that. Asian and European stock markets tumbled as the worries about Lehman counterparty risk and further financial market turmoil sent investors scurrying for safe havens such as gold. What causes such collapse?? Many people ponder this questions among themselves. Is this the beginning of Financial Crisis?? This is due to the short fall of their mortage markets and they were unable to find buyers after many lose their confidence after they have been filed into liquidation. The Company namely the late Lahmen Brothers accused them for spreading rumours to drive down the stock prices. Rumours may sometimes be true. Lehman Brothers had previosly reported a lot of quater losses in a year and bad news about its expected losses and some write downs in value worth millions US dollars. Rumours also hence say maybe the next victim is Bear Stearns due to their similarities. Both had relatively small balance sheets, they were heavily dependent on the mortgage market, and they relied heavily on the “repo” or repurchase market, most often used as a short-term financing tool. People , short term financing for big firms in order to boost the firm's capital is not a wise decision. I would rather use long term solutions in both debt and equity.