Thursday, Oct 16, 2008
Why stock markets will keep crashing
MoneyWeek: Why stock markets will keep crashing
Financial authorities have thrown billions at the money markets - but it hasn't done any good. Investors have twigged that, whatever governments do, a nasty recession is coming.
Posted by damien @ 11:33 AM (464 views) Add Comment
6 Comments
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1. mark said...
doesnt seem to be much financial news around at moment, seems to quiet after the exciting past few weeks..
2. george monsoon said...
throwing money at this problem is just going to exacerbate the outcome because of the extra debt to the tax payer.
Unless... the government are totally aware of the impending Recession/Depression and these billions are just a drop in the ocean of the trouble into which they are leading us.
3. Fjcruiser said...
We are in a panic situation fuelled by panic decisions from our governments. There are only 2 options for the government when economies are in such a mess. You either throw money at your banking system or your throw it at public projects.If you throw money at public projects, you run a greater risk as money will probably be spent on unecessary projects. If you throw money at bankers, they are theoritically more likely to keep it for themselves, not lending it out thus reducing the risk for the taxpayer.This is of course not taking into account the billions of CDS which will have to pay out when bankruptcies are confirmed.
Well either way, depression is unavaoidable. We are more or less all bankrupt.
4. shipbuilder said...
The only responsibility the government had to fulfil over the last few weeks, once the bailout had started, was to secure the banking system. This, specifically, was the ONLY use that public money was to be put to.
There should be not one pound of public money put toward trying to stop an inevitable recession.
The recession was happening anyway - now that the markets have realised this, presumably this is why stocks have fallen across the board and not just banks.
Any further money spent now is to shore up the entire FTSE, which is an insult on top of a disaster. Government need to stop meddling now.
5. malct said...
shippy "Government need to stop meddling now."
"Bank buyout needed to preserve free market"
-President Bush
[Huh? Go over that one more time.]
6. icarus said...
The scary bit is the point made in this article that UK banks will point to the less punitive US bailout (less restriction regarding dividend payments and management bonuses) and say, "you've got to give us that or we won't be able to compete".