MyDD :: It is a Global Stock Market crash...

It is a Global Stock Market crash...

by louisprandtl, Fri Oct 10, 2008 at 04:32:42 AM EST

European and Asian markets have tumbled once again today. Nikkei saw its worst crash today in 20 years. This is definitely a global economic crisis....

http://markets.on.nytimes.com/research/m arkets/worldmarkets/worldmarkets.asp

http://www.reuters.com/article/topNews/i dUSTRE4991VK20081010

http://www.marketwatch.com/news/story/ja pans-nikkei-225-tumbles-more/story.aspx? guid=%7BE8F8480F-1B6A-4289-9BAE-6628C5A0 F090%7D

US Markets futures are down, today may not be a good day. We haven't seen the bottom yet...

http://www.bloomberg.com/apps/news?pid=2601087&sid=afFlGdXQutAs&refer=home

Iceland is on the verge of bankruptcy. http://ap.google.com/article/ALeqM5hJdb2RwrEg_X8yNRHcVvn_OE9vKwD93LRO8O1

Sorry folks, not good news today...Market don't really have any confidence currently on Paulson, Bernanke et al to be able to handle the crisis. Paulson bailout plan haven't really made any difference yet. And the financial instruments that the Central Banks can use for stemming the market fall and then recovery are getting limited...expect more interest rate cuts.

Tags: Stock Market Crash (all tags)

Permalink :: 16 Comments :: Post a Comment

Expect a 35-40% reduction in your 401K (none / 0)

portfolio unless of course you're Warren Buffet...

by louisprandtl on Fri Oct 10, 2008 at 04:33:44 AM EST

I'm sorry... you're missing the point. (none / 0)

you can't push a string. Our economy is hostage.

yo mir kennen

by RisingTide on Fri Oct 10, 2008 at 03:07:14 PM EST
[ Parent ]

Re: It is a Global Stock Market crash... (2.00 / 1)

Actually, I think what you should expect (and hope for) is that the G7/8 summit this weekend will come up with a worldwide, coordinated approach involving both temporary guaranteeing of interbank loans and recapitalization of banks via government purchases of preferred stock in those banks.

If they can agree on such a plan, and implement it at once, we have a good chance to stop the bleeding and remedy that most immediate problem in the world economy (which, albeit not a cure-all, is an essential first step). If, however, the summiteers leave D.C. on Sunday night with nothing but vague words about finding a solution...Great Depression II, here we come!

by JDWalley on Fri Oct 10, 2008 at 05:41:25 AM EST

The derivatives are coming home to roost... (2.00 / 2)

Today's the day of reckoning when 400bn in credit default swaps could tank. Doesn't leave much change out of 700bn does it. You should moose this one up, louis

Moose Juice; debate without hate

by brit on Fri Oct 10, 2008 at 06:56:39 AM EST

You already covered it... (none / 0)

by louisprandtl on Fri Oct 10, 2008 at 10:24:10 AM EST
[ Parent ]

Re: It is a Global Stock Market crash... (2.00 / 2)

But all we gotta do is reduce the capital gains tax!

LOL

by Skaje on Fri Oct 10, 2008 at 07:17:15 AM EST

Re: It is a Global Stock Market crash... (2.00 / 1)

I am not worried. Bush is going to address the nation at 10am and restore everyone's confidence.

"Another problem we have...is that in election years we behave somewhat as primitive peoples do at the time of the full moon." --Harry Truman

by Steve M on Fri Oct 10, 2008 at 08:09:58 AM EST

Re: It is a Global Stock Market crash... (2.00 / 2)

I think the biggest problem is the 24/7 news coverage from around the world. Constant stories of the "sky is falling" is severly shaking confidence. The government's responding is actually making it worse.

Did people honestly think that these measures would work overnight? People don't like uncertainty. They don't know if the bailout will help, they don't know who will be President. Give it time, things will calm down. This is not the worst downturn, though it is the most publicized and world-wide downturn in our life time. In 1987, 2000 savings and loans failed, for very similar reasons. We made it through that, and we'll make it through this. Maybe not today, or next week, but things will stabilize and start moving again soon. Fear feeds fear, we need to stop focusing on it.

by Pa Woman on Fri Oct 10, 2008 at 09:27:04 AM EST

That is called a Contagion effect.. (2.00 / 2)

It is not average Joe who are deciding the terms. It is the bankers who have frozen out their funds and think that there is too much risk out there to lend money out. The fund managers are all scared stiff and selling off their positions...

by louisprandtl on Fri Oct 10, 2008 at 09:31:44 AM EST
[ Parent ]

Re: That is called a Contagion effect.. (2.00 / 2)

Yup, that's why the Credit is frozen, and I do think it will unfreeze.

The fall in the stockmarket though, that's not all big fund managers, the little people are selling too. I've got friends who are brokers, and they are saying they are getting a lot of those paniced "sell now" calls, even though they know it's wrong. He says normally that occurs right before you hit the bottom, so hopefully we are close. He also said he believed the 24/7 news coverage was NOT helping!

by Pa Woman on Fri Oct 10, 2008 at 09:43:21 AM EST
[ Parent ]

Re: That is called a Contagion effect.. (2.00 / 1)

Good points.

And PS, I'm sure that troll rating you gave upthread was a slip of the old arrow key

Moose Juice; debate without hate

by brit on Fri Oct 10, 2008 at 09:45:14 AM EST
[ Parent ]

Re: It is a Global Stock Market crash... (2.00 / 1)

ACK!!! It most assuredly was! I had it set to mojo, I must have hit the scroll button as I was hitting rate!!! Soooooo sorry!!!

by Pa Woman on Fri Oct 10, 2008 at 09:55:42 AM EST

The silver lining is (2.00 / 1)

that soon the dollar will be worthless, wiping off all our national debt. Brilliant move by Bush t wipe off the national debt.

by ann0nymous on Fri Oct 10, 2008 at 10:46:44 AM EST

I wrote a diary that stated this is the GD (2.00 / 1)

And I was right.

by Trey Rentz on Fri Oct 10, 2008 at 02:52:51 PM EST

Re: I wrote a diary that stated this is the GD (2.00 / 1)

I also wrote a diary endorsing Obama a year ago.
=)

by Trey Rentz on Fri Oct 10, 2008 at 02:53:17 PM EST
[ Parent ]

What does your Crystal Ball say about what's (none / 0)

going to happen next to the financial market?

by louisprandtl on Fri Oct 10, 2008 at 02:57:16 PM EST
[ Parent ]

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