Wall Street fell to its lowest level in three weeks on Thursday with the Dow Jones Industrial Average losing 210.09 points or 2.68 per cent to 7,632.53 on uncertainty over the world economic and financial situation. The average yield on benchmark 30-year Treasury Bonds fell to a new historic low of 4.891 per cent, down from 4.959 per cent on Wednesday. The bond market continued to serve as a refuge for investors facing torment on the world's markets.

The Federal Reserve Board chairman, Alan Greenspan, who yesterday justified to Congress the Fed's bail-out of the Long Term Capital Management (LTCM) said its failure could have had dire consequences. "Had the failure of LTCM triggered the seizing up of markets, substantial damage could have been inflicted on many market participants, including some not directly involved with the firm, and could have potentially impaired the economies of many nations, including our own," he said.