Wednesday, Feb 28, 2007
Bearish news from around the globe sends markets tumbling
FT: European markets tumble following Asia sell-off
A combination of worries about the sustainability of Chinese growth and bearish news from the US particularly from the former Federal Reserve chairman Alan Greenspan who used the word "recession" gives the markets the jitters.
Posted by denzil @ 12:00 PM (23 views) Add Comment
5 Comments
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1. tyrellcorporation said...
I can't see the tumble lasting as I don't reckon there is the appetite for 'bad news'. It'll all roar off again by the end of the week, IMHO.
2. geed said...
I agree, Greed is powerful and we as humans have become besotted with self gain. All bad news is turned into an opportunuty to make money once again, the 3% loss is forgotton as shares now look "cheap" again....crazy self perpetuating stuff.
3. lvmreader said...
Are you chaps under the age of 30 by any chance?
4. Pedagog said...
Of course last May the FTSE lost 9% but still recovered.
Medium to long term there will be a recession but in my opinion this is just a short term tremor sometime before the real thing. The market will recover in the short term.
5. talking rot said...
If I recall correctly, the initial fall was triggered by a decision of the Chinese Government to abolish the tax advantageous rules of their stock market investments. Their stock market plummeted. The following day, the annoucement was discredited and withdrawn and while stocks have made some recovery, it is not a full recovery yet. However, the decline in the Chinese stocks produced a ripple effect around the world and panic set in. The Rest-of-World markets are driven by fear and fear is contagious. Hence downward pressures (which had been building for a while) were triggered in the R-o-W markets.
This is the first proof that China is rising as the dominant world force. When China wakes, the Rest-of-World will tremble. But I don't think I'll see the US knocked off pole position in my life time and I'm 37. I seem to recall the British Empire was no longer profitable from the 1890s [but possibly the 1900s - can't remember exactly] but it still lasted until 1947 despite 2 massively expensive world wars.