Posted on 01/21/2008 9:50:32 AM PST by mojito
Equities sank on Monday, tracking sharp losses across Asia, after financial stocks seen as being exposed to the bond insurance market were stung.
By the close in London, the main European indices were . The FTSE Eurofirst 300 was down 5.1 per cent to 1,288.80, Frankfurt’s Xetra Dax shed 6.7 per cent to 6,825.63 . The CAC 40 in Paris lost 5.8 per cent to 4,798.66, and London’s FTSE 100 sagged 4.6 per cent 5,633.8. These were the worst one-day falls since September 11, 2001.
The Eurofirst 300 and the CAC 40 were in technical bear-market territory, having fallen more than 20 per cent since their 2007 peaks.
The losses in Europe followed heavy falls in Asia as investors gave US President George W. Bush’s stimulus package a lukewarm response. In Japan, the benchmark Nikkei 225 tumbled 3.9 per cent to a 27-month low of 13,325.94. It has lost a quarter of its value in the past six months.
”Equity markets greeted the news [of the stimulus package] with a resounding thud,” said Sue Trinh at RBC Capital Markets.
Hong Kong’s Hang Seng declined 5.5 per cent to 23,818.86, while Australian stocks extended their losing streak to 11 straight sessions.
Stock markets were also struggling for direction because US markets are closed for a national holiday on Monday, but US equity index futures were sold off steeply.
(Excerpt) Read more at ft.com ...
Maybe they'll be so kind as to shovel the front walk while they are here.
LOL ~ funny ~
thanks for the chuckles!
keeper
shouldva been done when Hydroshock was paid to troll on FR...
This is a biggun'.
If the Dow experiences trading curbs and still falls drastically, the world exchanges will PANIC.
Dropping bond insurers to AA from AAA is a big deal and everyone is now scrambling for cash as "the run" is on and everyone must now mark to market.
There's simply not enough cash to cover all of the debt. Major banks and brokerage houses are at risk. Insurance companies. 401ks. Retirement funds.
Anyone not holding gold, insured savings accounts and T-bills is at risk. Even cash under the bed is better than any stock or bond market.
Me too. I have kept my money in the same vehicles since the early 90’s and have found that I have over quadrupled my money over time. Dollar cost averaging is the way to go because when it is down you are buying shares at a lower cost. When it goes up you profit.
This has done well over the long run.
Some who continued to post articles about the bubble...warning all...are no longer with us. I don’t know if they were removed, or quit.
Yep. Me too. It may be time for some belt-tightening to avoid drawing down too much during weak times. Even though retired, our nest egg has to last several decades at a minimum. That's too long a time to get too conservative with investments.
The TSX dropped 500 points today being a 4.3% drop. Today’s drops all over the world are VERY significant!! I don’t see anyone with the answer to stop this Global free fall and prevent a world wide recession. It WILL happen. As we did ver the last three years, we have removed the funds from all of our RRSP’s and they are now in a safe buried in the floor in the basement. At least I know what I have today will be the same tomorrow. I don’t trust any of these financial prosnosticators - NONE of them. CO
I had that happen from $132.00 to $0.31 during the Internet Bubble.
Stagflation, here we come!
The credit crisis is a matter of musical chairs, nobody knowing who is holding the bad debt when the music stops. The Fed is keeping the music going by lowering rates so far. Had they popped the credit crisis last summer by doing nothing, those bad credits would be losses already, and we wouldn't be looking at both a recession and crappy dollars. Equity would have taken its proper hit faster, and the dollar and the solid part of the economy wouldn't have to take it in the shorts.
Way to go Bernanke. Protecting Wall Street for 6+ months ended up protecting nobody.
We had one like that also during the whole Enron scandal.
My husband worked at TV Guide, and the CEO and CFO cooked the books. The stock went from over $100/share to around $4/share in a matter of weeks. At least the CEO and CFO got caught. I don’t know if they have actually served jail time. It’s in the news occasionally.
Some of my husband’s co-workers got really screwed during that ordeal. They lost their jobs, and couldn’t find other work. Some of them purchased the stock, but didn’t sell it. They owed tons of taxes, but didn’t have the money to pay for it. It was a huge mess.
sshhh, people will think you are a nut.
Just keep repeating: The economy is fine. Go spend money. That’ll fix everything.
I have one like yours but 3 are other aggressive ones. I may have to eat Spam and Tang for a while however! And can you imagine if the socialist Dems win Congress and the WH? It will be a disaster. I hope my wife ,myself and dog don’t starve!!LOL
It does not matter to me. I gave up caring long ago. The truth is the only thing that matters.
Regards...
Used to drive past TV Guide in Radnor every day. Little brick building. Maybe there was more in behind the trees.
The M.S.MEDIA.
100% of us have to pay $3.07 gas and face layoffs and recession so a few banks and some deadbeats could get some benefit. WAY TO GO Bernanke!
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