Us stocks fell about 421.18 points due to the struggles being faced by the global financial markets. The fall said to have continued despite efforts made by the government to rescue the banking system of the US government.
However, since the banking crisis erupted two months ago, lenders have pulled out from various types of unsecured lending and car loans in the US are now practically impossible to secure. The lack of credit in auto financing is estimated to cost Ford, General Motors and Chrysler at least 6 million new car sales by the end of the year.
Banking stocks also took a beating with Morgan Stanley falling 10 per cent while Goldman Sachs lost 7 per cent.
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