Rout... global share markets have plunged as the US financial system is thrown into turmoil, fuelling fears of a worldwide recession.

THE share market is expected to tumble today, after global share markets went into freefall overnight amid growing fears we’re heading for a global recession.
Wall St took a dive after major investment bank Lehman Brothers declared bankruptcy, and troubled Merrill Lynch was sold to Bank of America for a bargain basement price. These moves, coming hot on the heels of a government bail-out of mortgage firms Freddie Mac and Fannie Mae have heightened fears for the stability of the US financial system.
NEWS.com.au takes a look at what the US crisis means for the local share market, mortgage rates, and our banks.
What happened yesterday?
- Lehman Brothers declared Chapter 11 bankruptcy.
- Bank of America bought Merrill Lynch for $US50bn.
- A group of global banks sets up $US70 billion emergency loan program.
- Insurer American International Group struggles for survival.
- Alan Greenspan calls the crisis a “once in a century” event.
- Dow Jones suffered its largest point loss since the September 2001 terrorist attacks.
- RBA pumped $1.3 billion into the financial system to soothe jittery markets.

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