AP: Friday, May 2: "In the first hour of trading, the Dow Jones
industrial average rose 84.92, or 0.65 percent, to 13,094.92"
http://biz.yahoo.com/ap/080502/wall_street.html
--------------------------------------------------------------------------------------------------------------------------------
From: "Kickin' Ass and Takin' Names" <PopUlist...@[EMAIL PROTECTED]
>
Newsgroups: alt.politics
Subject: Stock markets plunge worldwide -- Bushenomics at work
Date: Mon, 21 Jan 2008 15:04:32 -0800 (PST)
Organization: http://groups.google.com
Lines: 83
Message-ID: <ba83c8de-7ccf-44e9-
bdb1-8d5ebe62a5e4@[EMAIL PROTECTED]
>
NNTP-Posting-Host: 75.197.98.253
Mime-Version: 1.0
Content-Type: text/plain; charset=ISO-8859-1
Content-Transfer-Encoding: quoted-printable
X-Trace: posting.google.com 1200956673 32766 127.0.0.1 (21 Jan 2008
23:04:33 GMT)
X-Complaints-To: groups-abuse@[EMAIL PROTECTED]
Mon, 21 Jan 2008 23:04:33 +0000 (UTC)
Complaints-To: groups-abuse@[EMAIL PROTECTED]
z17g2000hsg.googlegroups.com; posting-
host=75.197.98.253;
posting-account=u8EbJwoAAACwPTiS-yGwA4_FF6JC1-l4
User-Agent: G2/1.0
X-HTTP-UserAgent: Mozilla/4.0 (compatible; MSIE 7.0; Windows NT
5.1; .NET CLR
1.0.3705; .NET CLR 1.1.4322; Media Center PC 4.0; .NET CLR
2.0.50727),gzip(gfe),gzip(gfe)
Stock markets around the world plummeted today, as a financial crisis
that began in the market for U.S. home mortgages spread to almost all
corners of the global economy.
U.S. markets were closed for the Martin Luther King Jr. holiday, but
all of the world's other major economies experienced a sell-off. Stock
prices fell 7 percent in France and Germany, 5 percent in China and
Great Britain, and 4 percent in Japan. Stocks lost value in 42 of the
43 nations with widely followed markets; the only exception was Sri
Lanka.
"It was all about blood on the wall," said Georges Ugeux, chairman of
Galileo Global Advisors, who was visiting the Indian stock exchange,
which fell 7.4 percent (the equivalent of a 900-point drop in the Dow
Jones industrial average). "For them, this is a black Monday."
Behind it all: Investors worldwide grew fearful that problems from
massive losses on loans made to U.S. home buyers will cascade through
the world financial system. For example, the Bank of China is now
forecast to record a multibillion-dollar loss on U.S. mortgage
investments.
And companies that insure bonds are incurring such massive losses on
exotic securities based on mortgages that one is in receiver****p and
others have had their credit ratings cut. That could cause financial
institutions worldwide to mark down the value of a wide range of
assets guaranteed by these insurance companies.
Add to that the slowing U.S. economy, and it was too much for
investors worldwide.
"We're in a global economy," said Randy Bateman, chief investment
officer of Huntington Asset Advisors. "This is just the result of a
perfect storm of problems that have surfaced here in the last two
weeks that have manifested in the stock markets -- all of them."
While the European stock markets have avoided most of the volatility
of the U.S. stock exchanges in recent weeks, European Union officials
voiced anxiety today that the U.S. economic slowdown may begin having
a stronger impact on Europe.
"We are all concerned," said Finance Minister Andrej Bajuk of
Slovenia, whose country holds the EU's rotating presidency. "We are
following the events on a daily basis. We hope things will not be as
bad as they may look."
Other European officials said they hope the strong European economy --
driven by declining unemployment and a strong euro -- will outweigh
the emotional response to the economic slowdown in the United States.
"It seems that the markets are considering the possibility of a more
pronounced slowdown, even a recession in the U.S.," EU Monetary
Affairs Commissioner Joaqu=BFn Almunia told re****ters today. "I hope
they will pay attention also to the real information about the
economy, in particular in Europe. Because, at least in Europe, the
economic fundamentals of our economies are sound."
Almunia also said that European markets are becoming more independent
of the U.S. economy, which he hoped will insulate them from continuing
downturns in the U.S. market. With the dollar at all-time lows against
the euro, in the past year European markets increasingly have been
turning to China, Russia and oil-wealth Gulf nations to compensate for
some of the business they have lost from the United States.
Champagne producers, for example, are more than making up for lost
sales to the United States with increasing markets in Russia and other
countries with burgeoning wealth and a growing consumer class.
Though some European financial institutions with U.S. investments have
suffered from the subprime mortgage crisis, most European banks have
not been affected. Mortgage requirements are much more stringent in
most European countries, and housing markets, while cooling slightly,
have not suffered the decline in sales seen in the United States.
Even so, consumer confidence has been slipping in many European
countries as inflation has begun making a comeback in recent months.
Holiday retail sales were down in France and other countries, in part
because consumers fear inflation in the prices of many basic
commodities such as milk and bread.
http://www.wa****ngtonpost.com/wp-dyn/content/article/2008/01/21/AR2008012100=
233.html?hpid=3Dtopnews
|
