Money Grab

I was reading my usual news sites and this popped up on the pages.

http://www.news.com.au/business/story/0,23636,22424725-462,00.html

"

HUNDREDS of worried customers of British bank Northern Rock queued for a second day yesterday to withdraw savings, ignoring assurances that the lender will not go bust due to the global credit squeeze.

Panicking savers of Britain's fifth-biggest mortgage lender had begun to withdraw their money en masse on Friday, taking out a reported £1billion ($2.3bn) over counters or online.

"

Now this is despite the bank assuring its customers that they will not go broke and the Bank of England offering liquidity.

If this starts spreading then we have a big issue that can seriously destabilize the banking industry as well as the wider economy.

This is worrying

U.S. payrolls contract by 4,000 in August

Major surprise; economists had been expecting growth of 115,000. It looks like the sub-prime worry are spilling over to the other area of the economy as well.

So does this mean that the US Feds will cut interest rate later this month ? I think so.