| stock market | |
|---|---|
| Jan 21, 2008 17:43 |   |
 | World wide stock has declined 3-7% would anyone care to comment as to whether the stock market will continue in a downward spiral or level off and regain some upward momentum? |
| Jan 21, 2008 22:03 | #1 |
| World wide stock has declined 3-7%. What makes it decline? Personally, I think the subprime crisis was the main culprit. It has had negative influence on world economies. As long as US economy recovers, I believe the stocks in the world will regain some upward momentum. |
| Jan 22, 2008 10:45 | #2 |
| Stocks are not the economy. The fall in prices is an over-reaction by a minority, many of whom were caught out because they were borrowing money, or were simply short term gamblers. Remember a very tiny proportion of the total number of shares were traded. Most shares are held by institutions who are mostly invested for the long term. Don't forget that for every share sold in panic there was someone else grinning with pleasure at the opportunity of buying at a discount. Yes this might slow Chibna's economy a shade...but fantastic, that's what the government wanted! It will also reduce some of the demand for raw materials from the rest of the world so that can only help reduce the top prices that China is paying now. Actually, this is why China needed a slow down, fast growth has caused inflation because supply hasn't been abe to match it. Maybe the markets have further to fall , but that's just part of the shake out. I would still call what we are experiencing a correction rather than a recession or a real bear market. The investment advisors are all saying hold on, they know the real economises are sound. |
| Jan 22, 2008 11:58 | #3 |
| it's far from recessesion, just call it wandering to bear area. this morning fed announced 75 bsp redcution of overnight rate to 3.5%, Boc's reaction is down the overnight by 25 bsp for stablizing ex. chg rate. |
| Jan 24, 2008 18:45 | #4 |
| I just read that the massive drop in the stockmarket was triggered by the rogue currency trader in France. His bank had to sell many stocks in order to keep liquid. Other stock traders then baled out when they saw the trades. Seems something is wrong with the system! But overall, there is little loss - some people sold others bought, so some willlose some will gain. Now the markets are moving up again. Time to buy....I hope, because that's just what I've done! |
| Jan 24, 2008 22:03 | #5 |
| Paul, your pocket is becoming deeper as dow and other composites gained. Bush promised 117 million tax rebates to US families as part of economic stimulus package. However, banks still hesitates to loan in spite of cutting overnight rate. Liquidity nightmare from Subprime is still haunting somewhere. |
| Jan 25, 2008 19:43 | #6 |
| Was Jerome Kerviel (the trader) the real culprit or just a scapegoat for the bank. Who knows and who cares, the deed has been done. It just seems there have been numerous lower echelon people taking the "rap" for devious things all the way from the Iraq prisoner torture situation to the Valerie(?) Wilson "who dunnit" case. Unfortunately if the "big timers" are apprehended then they are confined to the hospital or have amnesia,the wheel chair, crutches,etc. Don't even know why I got off on this tangent. I'll shut up now!! |
| Jan 26, 2008 17:55 | #7 |
| Ultimately the bank was at fault. There business processes were inadequate, they are responsible. In regards to your tangent: I couldn't agree more. |
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