Going Down
Jan 21st, 2008 at 8:03 pm by Susie
Asian markets plummet again:
Markets in Asia were bleeding amidst panicked selling, with Japan, South Korea and Australia nursing falls of almost 5 percent as growing fears of a U.S. recession sparked massive selling, sending investors to safe-haven government bonds.
But wait, there’s more:
This week could mark the end of the bull market for Wall Street, with U.S. stocks likely to join a global equity market plunge triggered by fears of a U.S. recession.
Cash equity markets were closed on Monday for Martin Luther King Jr. Day. But Wall Street stock index futures tumbled more than 4 percent, suggesting a sharply lower open for Wall Street on Tuesday, after routs in Asian and European stock markets on Monday.
Investors said last week a $150 billion White House rescue plan was too little too late, as more and more data signaled the U.S. economy was headed for recession.
If U.S. stocks open at the levels futures were indicating, it would push major indexes dangerously close to bear market territory — or a 20 percent drop from their peak in October. That would mark the death of the bull market that was born in early October 2002.
And more:
Europe’s major stock indexes suffered their biggest one-day selloff since Sept. 11, 2001 Monday and lost over $300 billion in market value as persistent fears of a U.S. recession drove investors to short selling.
“(Global stocks) are officially in a bear market,” Craig Howard Russell, chief market strategist, China from Saxo Bank told “Worldwide Exchange.”
“We really feel this is the beginning of something, not just the end, and we’re going to move lower globally across the board in the next few weeks,” Russell said.
The 20% mark just signifies the bear has started to claw. There’s probably another 20% to go. S&P will hit 1100 this year as we get our recession over with so a new president can create a bull for the last 2 years of their administration.
Well, our war-and-deficit-and-massive-corruption President, Hoover the Second, was the hand-picked favorite of WSJ and most of the media. Too bad they won’t have to pick up the pieces of the Bush Depression. I sure hope we see some financial editors on the soup lines, but they’re too well insulated from the results of their lying hype.
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