Posted on 01/21/2008 6:14:28 PM PST by abigkahuna
TOKYO (Thomson Financial) - Japanese shares were sharply lower in early trade Tuesday as growing fears of a US recession and a stronger yen prompted investors to sell.
The benchmark Nikkei 225 Stock Average fell below 13,000 points for the first time since October 2005.
After their losses Monday, stocks continued to lose ground on the widespread view that President Bush's 145 billion US dollar stimulus plan may not be enough to pull the world's largest economy back from the edge of recession.
Adding to the nervousness was the yen's appreciation. The currency was last trading at 105.64 yen to the dollar, more than 1 yen stronger than its level late Monday.
At 9.38 am (0038 GMT), the blue chip Nikkei was down 594.22 points or 4.5 percent at 12,731.72, while the broader Topix was down 55.56 points or 4.3 percent at 1,238.18.
Many market economists and analysts seem dissatisfied with President Bush's package of measures intended to prevent the US economy from slipping into recession.
'Unless the US government decides to inject public funds into resolving the subprime loan issue, fears about the credit crunch may not go away,' said Osamu Tamada, a Mizuho Investors Securities strategist
(Excerpt) Read more at forbes.com ...
surpise rate cut by the fed before open?
Would have worked last Friday. Now it will just contribute to the sense of desperation, IMHO. If he did it, it would have to be a full point cut, which i don't think Ben is ready to do.
Wait a bit, we are still not sure we have hit bottom. There is no rush. The market will gain it back slower than it dropped. See how the market acts around 11,500. If we bounce that will where it happens.
Now either there is a true unwinding of the global markets or there is nothing except a short term dumping. Shortly we shall see.
There are those of us who have a memory of '29, either personally, or through parents who lived through that financial horror. I truly hope that this current situation that is unravelling before our eyes is not like '29. I am not ready for it...and it would put a severe crimp in my lifestlye. :)
Once again Flavius, I want to thank you for your insightful and very conservative post. It reminds me of the old Soviet Union, where if the party line isn't towed, its off to the old psych ward...
I agree, it would have worked last week, but now—it will look like panic. That’s what happened in 29, inaction and then wrong action
Dunno. Depends on how much debt you have, how close you are to needing your retirement money, if you need $$$ for medical, and finally if any of your investments have anything to do with housing and/or bonds.
I’m a young healthy man (knock on wood) in school with minimal debt. I’ll have an interesting time getting a career started but by the time I’m gray haired this will all be “back in the days”.
If your older say in your late 40’s have an IRA held by a fund that is exposed (almost all are) and you have some mounting health costs not to mention some consumer debt to pay off... well take comfort in the fact that there are enough people just like you that you guys are the new class to pander to.
Breadlines and grapes of wrath no. Buckling down and not buying a new plasma or nice car for the next 5-10 years probably. On the flip side if you do have some money to move around wait 2-3 weeks for this thing to bottom out and go get some solid stocks on the cheap sit on em and by 2012 you’ll be looking like that monopoly feller.
“solid stocks”
big cap?
The entire world wants uncle sam to bail out the stupid and greedy.
Perhaps because the entire world is stupid and greedy:)
I expect the DOW to drop below 10k before June, and I'm not the only one.
Well that line may be tested way before June. I say, look for declines tomorrow, a dead cat bounce the day after and then steady declines to test that 10K line before Valentine’s Day. After that? Who knows?
What about public funds to keep the bond insurers afloat? If they go under, that means a total unwinding because of a loss of confidence in all financial instruments.
next thing they will tell me markets are not manipulated and there is no zero sum gain
anyway, lets find out how many hedge fund managers that held sub prime ponzi schemes ran away before they let the boat sink
also what is the next scam after housing market
is it oil and gold, im not impress with people panicking with the obvious
im more curios what the next big ponzi scheme will be
off to tulips
International confidence in the US Treasury has diminished to the point that if there is ANYWHERE else to go, they'll go there. Our combined debt (consumer, state, federal and current account (trade)) is too high. There's LEGITIMATE questions as to whether we are willing, if not able, to pay it all back.
I believe there's very serious risk to the global financial infrastructure. I also believe it will be difficult for "Uncle Sam" to bail everyone out.
Stagflation, times 10.
Hey, if Japan and the rest of the world think bailing out the sub primers is a good idea then have at it!
Send cash now.
We’ll accept it!
Hard to believe there are still any buyers left...
For index puts?
Didn’t they pay any attention to the Democrat debate? Democrats will fix it all, the market should roar tomorrow.
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