Posted on 10/09/2008 9:38:22 PM PDT by maccaca
JAKARTA, INDONESIA: Indonesian stock trading was frozen indefinitely Friday (10 Oct) to "avoid deeper panic" as global markets plunged over concerns stemming from the U.S. financial crisis, the bourse president said.
A suspension was imposed on the Jakarta Stock Exchange on Wednesday in response to sudden, steep loses, but authorities had planned to resume trading Friday morning.
The last-minute reversal came just minutes before the scheduled reopening in Jakarta as Asian stocks tumbled again in response to a whopping 7.3% decline of the Dow Jones Industrials Average. In Tokyo, Japan's main index sank more than 10% Friday morning.
"The situation is not yet conducive. This is to prevent deeper panic," bourse President Erry Firmansyah told The Associated Press. "It will be closed indefinitely while we will continue to monitor."
Heavy selling by foreign investors drove down the benchmark JSX index 21% this week and it is down 47% this year, making it one of the worst performers in Asia.
On Thursday, the Indonesian government and Bank Indonesia took steps aimed at boosting liquidity and averting a credit crunch. That came after an ill-timed hike in interest rates on Tuesday (7 Oct) to fight inflation.
That was an old joke dummy...
“Should US market follow suit?”
No, I’m not done buying yet!
Caution... remember you quoted him as saying "around the corner."
As I see it, the circumstances are as follows... governmental manipulation leads to financial crisis which leads to massive dislocation of assets... which leads to deep recession if not depression, which leads to additional massive government intervention, which cannot be paid for by taxation or borrowing... this leaves only one alternative... crank up the presses...
Net result... as a Hong Kong stockbroker told me on October 20th 1987, when I arrived there from Tokyo..."IT IS DISASTAH, IT IS DISASTAH..."
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