Who is responsible for the turmoil in global stock markets?

Who is responsible for the turmoil in global stock markets?
Jan 23, 2008 01:23
LEOPOLD219 Points: Join Date: Feb 7, 2007 Status: offline	Who is responsible for the turmoil in global stock markets? US. Many people hold the same opinion. Trapped in subprime crisis, US economy is hard to survice and likely goes into recession. To survive the recession and calm down those investors, US Fed announces to cut the interest rates again by 75 basic points. However, some experts say that cutting interest rates can not save US. Except subprime crisis, the imbalance that have been built up for years in US economy---a big current account deficit, a huge fiscal deficit and a lack of savings is also a factor that might cause recession. What should Washington do to avoid recession? The rumour even says that another financial crisis might break out. Really?What are your comments?

Jan 23, 2008 01:23

LEOPOLD219
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Join Date: Feb 7, 2007
Status: offline

Who is responsible for the turmoil in global stock markets? US. Many people hold the same opinion. Trapped in subprime crisis, US economy is hard to survice and likely goes into recession. To survive the recession and calm down those investors, US Fed announces to cut the interest rates again by 75 basic points. However, some experts say that cutting interest rates can not save US. Except subprime crisis, the imbalance that have been built up for years in US economy---a big current account deficit, a huge fiscal deficit and a lack of savings is also a factor that might cause recession. What should Washington do to avoid recession? The rumour even says that another financial crisis might break out. Really?What are your comments?

Jan 23, 2008 12:33	#1
GRIZ326 Points: Join Date: Jun 12, 2006 Status: Offline	The US economy has been mismanaged for as long as I remember. The sub-prime fiasco is just the latest in a series of stupid plays. The difference could be that now US must "pay the piper" for years of incompetence. The world will suffer right along with the US if we fall into recession or worse.

Jan 24, 2008 18:41

APAULT
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Join Date: Mar 11, 2006
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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!

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