Credit Crunch Batters Asian Markets, Seoul Plummets 7%

Credit Crunch Batters Asian Markets, Seoul Plummets 7%

www.cnbc.com

Asian stocks plummeted, extending declines in the morning session Thursday with Japan's Nikkei hitting eight-month lows and South Korea's KOSPI shedding 7% as investors continued to dump risky assets amid growing fears about a global credit squeeze.
The Korea Exchange temporarily suspended program selling orders tied to a drop in futures prices for the second time this year.

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Related AboveTopSecret.com Discussion Threads:
French Bank freezes US funds;Stocks Plunge on Rising Credit Anxiety

It looks like the worldwide correction continues. The panic and selloff seems to continue. I think the only European markets that closed up yesterday were Germany and Switzerland.
So the questions I have for the more financially astute is this. Is this the correction that seems to be long overdue, or something more like a crash? If it's a correction how much further (seems like we're close to the normal healthy 10% correction already), and will the FED and/or govt intervene further to postpone it? If it's a crash, is it of the 1987 or '27 type?
It seems to me that if there isn't a bottom found soon, we may be in for quite a ride down.

www.cnbc.com
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7%!!!

Hell, it's gonna be bad in the US tomorrow morning... if it's not now, it will be this week or next week... the elite tought they could crash the economy in slow-motion... it seems that it won't work.

Now that the US have exceeded their debt... they'll need to expand it again which will probably be the fatal blow when the announce comes.

[edit on 16-8-2007 by Vitchilo]

I'm not sure how much you or I should read into that S Korea down percentage by itself. I'm not sure how volatile it is during normal times. However with Hong Kong, Singapore, and Taiwan all down by more than 3% right now I think its probably a bad sign.

I notice the Shanghai Composite is off around 2% as well. Didn't a similar sized selloff in it precipitate the big drop in US markets earlier this year?
(edit to add second paragraph)

[edit on 15-8-2007 by jefwane]

Europe is down around 2% now.

It doesn't look good for New York trading this morning; although, many times Wall Street breaks the trend. Let's see what happens in about 5 hrs. 20 min.

Can anyone tell us what would of happened if the ecb never injected that huge amount of money last week?

Some say they should not of done it, or are the ecb being proved right in whats happening.

[edit on 8/16/2007 by andy1033]

The central banks are of course doing the right thing by adding liquidity to the markets.

Without injecting cash, trading could seize to a halt. And the only thing worse than a dropping market is a market where you can't sell anything at all, which would inevitably lead to a total market collapse.