Posted on 08/07/2011 10:01:41 AM PDT by chuckee
Sun Aug 7, 2011 10:10am EDT
* Tel Aviv blue chip index closes down 7 pct after delayed opening
* Market fears another global recession
* Circuit breakers used for first time since 2008 (Adds closing prices, bond prices, cenbank/finance ministry statement)
By Tova Cohen
TEL AVIV, Aug 7 (Reuters) - Tel Aviv shares closed 7 percent lower on Sunday in the first response of a developed market to Standard & Poor's downgrade of the United States' credit rating that has sparked fears of another global recession.
The Israeli market along with a few emerging markets in the Middle East were the first to trade after S&P on Friday cut the U.S. long-term credit rating by a notch to AA-plus from AAA due to concerns about the nation's budget and climbing debt burden.
The TA-25 blue chip index closed down 6.99 percent to 1,074.27 points and is down 18 percent since the start of the year. The broader TA-100 slid 7.2 percent. Israel's market is closed on Fridays and Saturdays.
The Tel Aviv market's opening was delayed by nearly an hour as circuit breakers kicked in when shares fell more than 5 percent in pre-market trade...
(Excerpt) Read more at reuters.com ...
bump.
I think this drop may have been related more to large demonstrations in Israel over the weekend and not primarily the S&P downgrade.
[...and not primarily the S&P downgrade.]
Perhaps the downgrade came as a result of the GOP failing once again to do its duty to stop the communist democrats from continuing it spending spree by giving Obama the taxpayers monies he loves to spend so recklessly. The weak pubs again did the wrong thing again by raising the dept ceiling instead of requiring the President and the left wing to capitulate to cut, cap and balance the budget overuns.
It is time for conservatives to boot the pubs and go third party or lose all to the ever active communist dems of America.
It is time to nut up or shut up. And the pubs shut up, as usual.
It is possible the big boys will cash out this week to wait for the new bottom in the market because our political process if failing. We needed massive spending cuts and they kicked the can. I don’t know what will happen but there is very good reason to be nervous going into this week. Most of the indicators are decidedly negative and it’s not looking good in Europe. We are in the same boat.
This administration is destroying business and it’s most damaging effort to date, Obamacare, is yet to completely fall on our heads. We are now locked into a process that will most certainly not work to fix our government. I fully expect the “bipartisan committee” to bog down quickly in partisanship. Meanwhile, there is no realistic hope until 2012 that we will dump the oppressive mandates, regulation, and stabilize the dollar.
Tel Aviv Stock Exchange opens to 6% losses as global crisis felt in Israel
Haaretz article:
His reluctance to take on the entitlements is the problem; he doesn't want to do it because it takes away the election issue with which he can club the GOP.
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