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Black Tuesday?????

A

Anonymous

Guest
If a guy doesn't have his money pulled out of the stock market yet--tomorrow may be a killer....Today while listening to the radio they were talking that tomorrow has the possibility of a "Black Tuesday" with a stock market crash- since all the worlds open markets tumbled bad today.... I think they said the Aussie market dropped the equivalent of 500 Dow points today--and that many retirement accounts could/did lose the equivalent of 10 years gain today/tomorrow....PANIC- FEAR- and CRASH are the words some of the world financial experts are using...
Most are putting blame on the US economy--the US administrations economic policy- and the slow action of the Fed.....
:( :( :( :(




European, Asian Markets Plunge

Monday, January 21, 2008 10:54 AM





LONDON -- European and Asian stock markets plunged Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to prevent a recession.


The U.K. benchmark FTSE-100 dropped 3.9 percent to 5,673.1; France's CAC-40 Index plunged 4.5 percent to 4,861.2, while Germany's slumped 5.35 percent to 6,922.7.


In Asia, India's benchmark stock index tumbled 7.4 percent, while Hong Kong's blue-chip Hang Seng index plummeted 5.5 percent to 23,818.86, its biggest percentage drop since the Sept. 11, 2001, terror attacks.


Investors dumped shares because they were skeptical that an economic stimulus plan President George W. Bush announced Friday would shore up the economy that has been battered by problems in its housing and credit markets. The plan, which requires approval by Congress, calls for about $145 billion worth of tax relief to encourage consumer spending.


"We've taken our lead from the Asian markets who have not been impressed by the U.S. There's debate if there's going to be a recession in the U.S. I don't think there's much chance of that though," said Richard Hunter an analyst at Hargreaves Lansdown Stockbrokers Ltd. in London.


Concerns about the outlook for the U.S. economy, a major export market for Asian companies, has sent the region's markets sliding in 2008. Just last Wednesday, the Hang Seng index sank 5.4 percent.


"It's another horrible day," said Francis Lun, a general manager at Fulbright Securities in Hong Kong. "Today it's because of disappointment that the U.S. stimulus (package) is too little, too late and investors feel it won't help the economy recover."


Japan's benchmark Nikkei 225 index slid 3.9 percent to close at 13,325.94 points, its lowest close in more than 2 years. China's Shanghai Composite index plunged 5.1 percent, partly on worries about mainland Chinese banks' exposure to risky U.S. mortgage investments.


"People are certainly nervous about a potential recession in the U.S. spilling over to the rest of the world," said David Cohen, Director of Asian Economic Forecasting at Action Economics in Singapore.


"Maybe there's still some wariness about politicians are able to come up with a compromise and act sufficiently quickly" on a stimulus package, Cohen said. "I think the impact would be marginal anyway."


Investors took cues from the negative reaction to the president's plan on Wall Street on Friday, when the Dow Jones industrial average slid 0.5 percent to 12,099.30, bringing its loss for the year so far to nearly 9 percent.


Traders also have shrugged off assurances from Federal Reserve Chairman Ben Bernanke that the U.S. central bank is ready to act aggressively - which means a likely big interest rate cut later this month - to help the sagging economy.


Some analysts predict that Asia won't suffer dramatically from a U.S. recession because increased trade and investment within Asia has made the region less reliant on the United States than in the past. Excluding Japan, 43 percent of Asia's exports go to other nations in the region, Lehman Brothers calculates, up from 37 percent in 1995.


But on Monday, uncertainty and pessimism reigned.


In Tokyo trading, exporters got hit hard, partly because of the yen's recent strength against the dollar. Toyota Motor Corp. lost 3.3 percent and Honda Motor Co. sank 3.4 percent.


Shares of Bank of China dropped 6.4 percent in Hong Kong after the South China Morning Post newspaper reported that the bank is expected to announce a "significant writedown" in U.S. subprime mortgage securities, citing unidentified sources. In Shanghai, the bank's stock declined 4.1 percent.


India's the benchmark Sensex index fell 1,353 points, or 7.4 percent - its second-biggest percentage drop ever - to 17,605.35 points. At one point, it was down nearly 11 percent.


The decline hit companies across the board, with power utility Reliance Energy Ltd. falling 16.4 percent. Major software company Tata Consultancy Services Ltd. slid 7.6 percent


"A gloomy U.S. climate has affected the global markets. Even if those markets recover, it will take sometime for the recovery to reach India because today's fall has been so drastic," said Jayant Pai, of the Mumbai investment company IL&FS Ltd.


Still, Pai and others suggested that the declines could lead to a buying opportunity.


"The sell-off today takes us close to the bottom," she said.


Since the start of the year, Japan's Nikkei index has declined 13 percent, while Hong Kong's blue-chip index is down more than 14 percent. Even China's Shanghai index - which nearly doubled last year - has fallen 6.6 percent over the same period and nearly 20 percent from its all-time closing high on Oct. 16.
 

backhoeboogie

Well-known member
Brokers are probably getting all kinds of buy orders. "If the price of ABC stock gets below $X, buy...." This is a time when investors are poised to take advantage of the other's panic. And these are indeed scary times.
 
A

Anonymous

Guest
The Fed held a middle of the night unscheduled EMERGENCY meeting to lower interest to pump in more money to try and keep the Stock Market from doing a total crash....Might keep the market from dropping the 700 points like India's did-- and slow down recession-- but will speed up and increase inflation and continue the devaluing of the dollar.. :roll: :( ....

And apparently it hasn't comletely handled the fears on Wall Street--DOW still tumbled over 465 points and NASDAQ down over 3.5% after the opening bell......

The word on the street is that the problems of the Bonds Insurer finance companies is now coming to light-and will be appearing in the next week (s) and could be a bigger negative economic impact than the housing fiasco- and could set the economy into a downward freefall.....Many global economists are saying all this is too little- too late- as that politics have been playing a roll in getting both the GW Administration and Fed from admitting the problem quick enough to stave off a huge disaster....
:(


Fed slashes key rate to 3.5%Citing weakening economic outlook, Federal Reserve makes biggest cut in nearly 24 years - three quarters of a point.

By Paul R. La Monica, CNNMoney.com editor at large
January 22 2008: 12:02 PM EST


NEW YORK (CNNMoney.com) -- The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday following an unscheduled meeting, citing continued concerns about a weakening economy and turmoil in the financial markets.
The Fed lowered its federal funds rate, which impacts how much consumers pay on credit card debt, home equity lines of credit and auto loans, to 3.5 percent from 4.25 percent.

The rate cut came more than a week before the Fed's next regularly scheduled meeting, a two day session that concludes on Jan. 30. Some market observers think the Fed will cut rates again at this meeting.

The Fed also lowered its discount rate, which is what it costs banks to borrow directly from the central bank, by three-quarters of a point, to 4 percent.

This was the biggest rate cut by the Fed since October 1984. And it was the first cut between regularly scheduled meetings since a half-point cut on the day the market reopened following the September 2001 terrorist attacks

"Broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets," the Fed said in a statement.
 
A

Anonymous

Guest
I'll bet our Administrations trading policy is endearing GW to the hearts and minds of the European populace about now :shock:

He might not only beat out ole Jimmy Carter for the US's choice as worst President- but may get a worldwide legacy as the President who bankrupt the World..
:wink: :lol: :( :(

EU Chief: U.S. Deficit Caused Our Stock Plunge


Tuesday, Jan. 22, 2008 8:06 a.m. EST


The EU's economy chief on Tuesday blamed the United States' huge trade deficit for plunging shares on world stock exchanges, saying Europe was in a very different state and could weather the storm despite slowing growth.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he would keep pushing EU governments to make economic and labor market reforms that would boost growth and jobs.

"It's obvious that we are living in an uncertain period," he told reporters after EU finance ministers met in Brussels. Fears of a U.S. recession - not a larger global slowdown - were behind falling equity markets, he said, stressing that Europe was not facing similar problems.

"We are well prepared to weather this situation even if we cannot ignore the risks of our growth being affected by this turmoil," he said.
 

olderroper

Well-known member
Oldtimer said:
I'll bet our Administrations trading policy is endearing GW to the hearts and minds of the European populace about now :shock:

He might not only beat out ole Jimmy Carter for the US's choice as worst President- but may get a worldwide legacy as the President who bankrupt the World..
:wink: :lol: :( :(

EU Chief: U.S. Deficit Caused Our Stock Plunge


Tuesday, Jan. 22, 2008 8:06 a.m. EST


The EU's economy chief on Tuesday blamed the United States' huge trade deficit for plunging shares on world stock exchanges, saying Europe was in a very different state and could weather the storm despite slowing growth.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he would keep pushing EU governments to make economic and labor market reforms that would boost growth and jobs.

"It's obvious that we are living in an uncertain period," he told reporters after EU finance ministers met in Brussels. Fears of a U.S. recession - not a larger global slowdown - were behind falling equity markets, he said, stressing that Europe was not facing similar problems.

"We are well prepared to weather this situation even if we cannot ignore the risks of our growth being affected by this turmoil," he said.

Read the archives starting Dec 26th
http://worldreports.org/news


I read elsewhere that its all part of the BIG Plan, to devaluate the dollar and replace it with a cashless monetary system. All your money will be on your real ID Card...and everything else about you.

They have to wreck the dollar to do it.
 
A

Anonymous

Guest
Yep-- Olderroper-- I've read several articles on that-- and with the leadership of GW Bush we're on a fasttrack to get our economy on the same level with the Third World nations...
When he and his buddy Fox get thru Mexicanizing us we'll have essentialy the two same class levels as they have-- the very rich elite and the poor- few inbetween.... :(
 

Faster horses

Well-known member
I'm not sure that this belongs here, but here it goes anyway.

I just read this and it may suprise some of you.

A recession is not yet absolutely certain. It's just possible that President G.W. Bush $140 billion of tax cuts combined with an interest rate cut by the Federal Reserve Bank may head it off.

Then the article goes on to say: (OT, how do you put things to in bold print?)
This recession would be different from any in a long time. It wouldn't be caused by government, although governments (Washington above all)
would have failed to foresee it, or act against it before it had spun almost out of control.

It would be caused instead by the best and brightest, and highest paid, operators in the marketplace,--by those in the banks and and in the related financial institutions.

----------------------------------------------------------------------------------
And in the same paper, was the shortest best description of subprime mortgage fiasco. I will reprint it here:

For several years U.S. lenders aggressively marketed 'subprime' mortgages to people with poor credit ratings. Banks around the world, flush with cash and hungry for investment opportunities, bought up these mortgages. When the mortgages came up for renewal at higher interest rates, homeowners began to default, triggering huge losses at the banks. They, in turn, tightened their credit and cut their dividends, triggering stock market losses and fears of recession.

FWIW
 

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