BF2S Forums NYSE: Black Tuesday?

What scared the Asian market??

http://forums.bf2s.com/viewtopic.php?id=90898

Yes sir.

What scared those markets was lingering fears about US recession, the crisis in credit and European sell-offs overnight (Aus. time).

And yes, you're looking at a sell off on the Dow Jones anywhere between 5 - 10%

Kmarion wrote:

All this talk does wonderful things for consumer confidence..lol. It makes me want to go out and boost up the economy.

It does means wonders for those who are not affected directly by the impacts. Everything becomes cheaper!

Ya, sadly we have to just trust in this fake money system. I mean, nothing is backed by gold or precious metals anymore, those items are in their own category OF these markets so we can just invest this paper money into precious metals. I mean WTF? It makes no sense at all, but yet it's just the way our world works now after we got off standards of GOLD/Silver Precious stones...REAL Trade.

DonFck wrote:

Wall Street opens in 7 hours, but here's some direction as to what's been going on during one day:

Nikkei: down 5,7%
Hang Seng: down 8%
ASX: down 6%
ISI: down 10% today and 7,41% yesterday
Helsinki: down over 5%

Analysts are saying that the bottom will be reached in a few weeks. These are the largest drops since 9/11

Im_Dooomed wrote:

What scared the Asian market??

The general worry over the U.S. housing market and the fear of the country going into recession.

So, global recession, anyone? Shit, and I've got a huge loan too..

Fixed or adjustable rate?

The Fed has made its biggest interest rate cut of 0.75%.  The last time they made such a big cut was 1982.  A chief investment strategist at Oppenheimer in New York has said that this may be the worst porst-war recession.

adam1503 wrote:

The Fed has made its biggest interest rate cut of 0.75%.  The last time they made such a big cut was 1982.  A chief investment strategist at Oppenheimer in New York has said that this may be the worst porst-war recession.

0,5% was expected, 0,75% is maybe to much to fast seing as inflasion lurks in the dark ...

<BoTM>J_Aero wrote:

Varegg wrote:

0,5% was expected, 0,75% is maybe to much to fast seing as inflasion lurks in the dark ...

No, when you're worried about your economy slipping into recession you definitely have to cut hard and fast to promote expansionary spending. That gives you the chance of either flattening the slump and keeping out of recession or at least making the recession a very quick one.

Will be hard to dodge this recession if inflasion sets in with additional ratecuts that only smells of panic, and panic has struck the stockmarket into a bear market meaning it will go further down no matter how much further down the rate is going. This will only make it a tad better for those with large loans not meaning they will automatically boost the few dollars in rate relief into spending it on consumer goods or stocks.

While I agree that inflation is an ever present threat to any economy, and currently running at over 4% in the US economy, I still think that the Fed made the right decision in cutting rates. I will, however, agree, that the move looks rather panicky, and that perhaps the actions of central banks should not be dictated by attempting to massage stock indices into the shape they'd like. The only good thing about rising inflation is that it would alleviate some of the pain caused by very high housing / property prices. I still think the decision to cut was the right move, the Federal Reserve must try to push back confidence and stability into the market, this is one way of achieving that, even if the effect isn't immediate.

ATG wrote:

I didn't point it out in my OP but a freefall for the U.S. is a freefall for billions of other people.

Which is something the " down with America " crowd never thinks about.

The basic lesson we need to learn here is that we have to become more reliant on markets like China and India. A lesson US financial institutions need to learn is that they need to be more fiscally responsible and not try and make a fast irresponsible buck that isn't matched by a commensurate increase in productivity (i.e., false growth or confidence-driven over 'growth').

Bernanke's retarded response? Make borrowing money easier with a 0.75% cut in interest rates when the problem with the world economy is US debt and the high price of oil. Retard.

Last edited by CameronPoe (2008-01-22 07:41:30)

Varegg wrote:

CameronPoe wrote:

ATG wrote:

I didn't point it out in my OP but a freefall for the U.S. is a freefall for billions of other people.

Which is something the " down with America " crowd never thinks about.

The basic lesson we need to learn here is that we have to become more reliant on markets like China and India. A lesson US financial institutions need to learn is that they need to be more fiscally responsible and not try and make a fast irresponsible buck that isn't matched by a commensurate increase in productivity (i.e., false growth or confidence-driven over 'growth').

Bernanke's retarded response? Make borrowing money easier with a 0.75% cut in interest rates when the problem with the world economy is US debt and the high price of oil. Retard.

I don't believe the thought is so retarded Cam - it's meant to be a relief for those with unbearable houseloans to cope better and to boost their believes that this will blow over without to much hazzle, not for others to loan more, i think with recession on the doorstep most Americans aren't to horny about lending money anyways ...

Do agree with your thoughts of dealing more with Asia to cut the dependency on the US market alone ...

There's a good side and bad to it. Yes, it will help out people repaying their debts, however it also means people will just borrow more money, and when debt is leading towards a recession, that's a bad thing.