CNBC Market News: Financial Crisis — This Day—One Year Ago: Sept. 19, 2008 - This Day One Year Ago * US * News * Story

Runway Angels
The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.
Smartphone Guide
Here's a need-to-know guide to nine devices, based on features, price, network and platform.
Wines for the Holidays
Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES

How Well Do You Know Your Bird?
Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.
A Healthier & Wealthier You
Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.
The Billionaire BFF's
Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?

SPECIAL REPORTS

Winterizing Your Portfolio
If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.
Investor's Guide to Real Estate
Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.
Alternative Investing
Stocks and bonds? Sure. But it's a big world out there for investors.

CNBC ON DIGG

The Financial Crisis: This Day—One Year Ago, Sept. 19, 2008

Published: Friday, 18 Sep 2009 | 4:00 PM ET

Text Size

By: CNBC.com

On Friday, the market rollercoaster continues—and seems to end up nearly where it began.

This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
Trouble is spreading beyond the banking sector and equities. Money management firm The Reserve says two of its funds have filed an application with the Securities & Exchange Commission, asking to be allowed to suspend or delay redemption requests due to a massive rush by investors to withdraw their money. Reserve said its $62 billion Primary Fund has received redemption requests for about $60 billion this week.

And Federal Deposit Insurance Corp. Chairman Sheila Bair predicts more US bank failures as the global credit crisis continues.

What You Were Reading:

But Mohamed El-Erian, co-CEO of bond giant Pimco, holds out hope. He tells CNBC that as of last night (Thursday), the US government's approach to the credit crisis has shifted from piecemeal to comprehensive planning and that should breed confidence.

Part of that coordinated planning is the SEC's temporary ban on short selling of 799 financial stocks. Short sellers have been criticized, some say unfairly, for the woes of Bear Stearns, Lehman Brothers [LEHMQ Loading... () ] and AIG [AIG Loading... () ]. Indeed, the ban does seem to be having positive effects on the market — though one veteran observer warns that such effects may be illusory.

What You Were Reading:

"I think yesterday was the most credible rally we’ve seen this year. It had that stampede effect that I’ve been looking for," Art Cashin, floor operations director at UBS, tells CNBC.

The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
However, he cautions that today's rally is probably "exaggerated by 30 to 50 percent," due to the ban on short selling.

The Dow finishes up nearly 370 points and 140 points of that could be attributed to four financials that are on the short-selling ban list: AIG, Citigroup [C Loading... () ], Bank of America [BAC Loading... () ] and JPMorgan Chase [JPM Loading... () ].

Is this the stock-market bottom? "Too early to say," Cashin says. "Watch the bank lending rate—that’s where the whole game’s played out in the next week."

What the Experts Were Saying:

Short sellers are being unfairly targeted for the collapse in the financial sector, said Jim Chanos, of Kynikos Associates.

George Milling-Stanley, World Gold Council director, tells how the precious metal is reacting to the market pendulum.

The Week and You: Courtney Reagan reports on the meltdowns, the panic and surprising stock advice from CNBC's guests.