Mass Sell Off across the World

Mass Sell Off across the World

www.bloomberg.com

July 26 (Bloomberg) -- Stocks tumbled around the world and U.S. Treasuries rallied on concern higher borrowing costs will slow takeovers, spur debt defaults and curb earnings, prompting investors to flee riskier assets.

The Standard & Poor's 500 Index fell to its lowest in almost three months, while the FTSE 100's biggest drop in four years led declines across Europe. Benchmark stock indexes in Argentina, Brazil, Mexico, Turkey and Sweden sank more than 3 percent.

(visit the link for the full news article)

The drops are pretty high

uk.finance.yahoo.com...

FTSE in London lost 3% today

US sub prime and other factors have triggered a world sell off. Hopefully, the markets will ease and do not continue tomorrow

www.bloomberg.com
(visit the link for the full news article)

Well part of it can be attributed to summer trading, always more volatile with less volume accentuating swings.

But then the two motors driving the markets are greed and fear, period. Looks like fear's in the driver's seat for now.

In a war zone, there can be a lot of carnage, but there are only so many killed and wounded in a given battle, and the remainder go on to live another day.

But in economics, everyone can become a statistic overnight.

Money, and the use and misuse of it, can cause more shock and awe than GB ever thought of.

The DJIA is down over 400 points now. Ouch.

Not a nice day on Wall Street.

Originally posted by djohnsto77
The DJIA is down over 400 points now. Ouch.

Not a nice day on Wall Street.

-423.51 (-3.09%) now

Double ouch

Global slowdown? If it is better sooner than later, economies have been almost in runaway mode in past years - ever watched daytime TV and watched the ever increasing really annoying ads for financial services - loans, consolidate all your debts etc? Money has been getting 'cheap'. Its allways a boom - bust affair, trick is to make the transitions as smooth as possable. Don't want a global recession now do we?

P.S. dont waste time concerning about the elite - they have a habbit of of landing on their feet (unless of course you drop them over a pit of spikes - don't matter much which way up they land then )

The trouble started last Friday but many didn't even noticed that something was not right from the beginning that day.

But all this has been predicted for quite some time and everything stabilize or at least seems to stabilize rapidly when it happens.

just listening to CNBC, one guy made a good quote

"we can the smell the smoke now"

a correction is needed. I've heard theories of a 10% correction of the Dow. Better for the market to correct now.

Sub prime market will find the bottom in early 2009.

Point-wise, it was pretty big, but percentage-wise, it was not that significant. Remember, the DOW closed at an all-time high of over 14K last week. A correction was inevitable and desirable.

OK...I'm an economics enthusiast but also a bit of a n00b, isn't it true that volatility can be a sign of rapid growth?

Can't this be a good sign, in a way?

it will be interesting to see how the Asian markets open up.

the sell off may start all over again.

Originally posted by uberarcanist
OK...I'm an economics enthusiast but also a bit of a n00b, isn't it true that volatility can be a sign of rapid growth?

Can't this be a good sign, in a way?

I'm not Milton Friedman, nor do I play him on TV, but to answer your question...

Well, it could be, if it was a matter of people pulling profits out of a strong market. But not this time. The credit market, which had fueled the stocks, is tightening up, so there will be less money out there. That and the fact that the housing market continues to be flat, caused this drop.

Oh my god you mean markets don't always go up !

DOH !

Seriously, why is anyone surprised.

Well Asian markets were down around 2% and it looks like European markets are doing the same in early trading.

Yesterday, the U.S. markets did recover quite a bit from their lows. It'll be very interesting to see what the American markets will do today, as this downturn seems to be led by concerns with some U.S. economic data.

[edit on 7/27/2007 by djohnsto77]

Oh my god the world is coming to end....just like it did in March when the (UK) FTSE dropped from 6400 to 6000 a considerably larger drop than the present one. Yet here we are at the end of the current drop and still higher than it was in March.....DUH. The market when its rising is doing so faster than it should so an inevitable adjustment occurs and that's what the falls are all about. So the net effect with after the current drop is that the FTSE has risen by 5% over a year. The market will rise a few percent as profit taking occurs....yes people do profit from drops and there will be the smart ones buying artificailly low stocks. The net result after a few weeks will be that the average annual growth will be around 10%. It was sitting at 14% before the drop. The reason why the smart investors make money in the long term is that there are enough "try to get rich quick" panic merchants out there!!!!!!!!!!

My Friend and I were debating this the other day. Though it was more of a Pro-Bush, Con-Bush discussion. Point is i predicted the Markets would fall quiet a bit to correct for the unusual amount of positives in the Market lately, but she figures that the government will put something into motion to stop such a terrible downslide like I was predicting.


I didn't know who to ask but i suppose now's as good a time as any, so I was just wondering what the Government did have in place for an event such as I was predicting?

Originally posted by malcr
Oh my god the world is coming to end....just like it did in March when the (UK) FTSE dropped from 6400 to 6000 a considerably larger drop than the present one. Yet here we are at the end of the current drop and still higher than it was in March.....DUH. The market when its rising is doing so faster than it should so an inevitable adjustment occurs and that's what the falls are all about. So the net effect with after the current drop is that the FTSE has risen by 5% over a year. The market will rise a few percent as profit taking occurs....yes people do profit from drops and there will be the smart ones buying artificailly low stocks. The net result after a few weeks will be that the average annual growth will be around 10%. It was sitting at 14% before the drop. The reason why the smart investors make money in the long term is that there are enough "try to get rich quick" panic merchants out there!!!!!!!!!!

I just hope you realise that a number of credible papers in the US, such as the Washington Post, are predicting a very, very bad future for the US economy. And hell, I'm no skeptic, but I'm highly skeptical your prowess in this field comes remotely close to the Washington Post, or the other analysts who predict bad times ahead, but cheer up

Well, all your stocks might drop and ''possibly'' raise again, but the US dollar still keeps going down lol.

A little longer and people from other countries / continents no longer have to go to Asian countries for supercheap equipment

I am worried that there will/is insider trading occurring which will preclude a terror attack similar to the insider trading which happened prior to 9/11.

www.abovetopsecret.com...