Asian Markets Tumble on Wall Street Drop

Asian Markets Tumble on Wall Street Drop

www.breitbart.com

Asian markets tumbled Monday morning as investors reacted nervously to a steep decline on Wall Street Friday after disappointing economic and corporate news reawakened worries about a U.S. recession.
Japan's benchmark index sank 4 percent, while Australia's market fell 3 percent and key indices in South Korea and Hong Kong were down nearly that much.

Investors in Asia dumped shares after a series of depressing economic and corporate reports Friday out of the United States.

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It looks like friday's selloff had a damaging effect on the Asian markets, this could have a similar effect once the U.S. markets open in the morning, fear usually breeds more fear, and that could spell trouble for an already shaking economy.

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Will we see another emergency rate cut by the FED? Are the markets ready to wait until March 18 for a 75 basis rate cut? Seriously the US economy is on the verge more than ever of collapse.

Originally posted by Vitchilo
Seriously the US economy is on the verge more than ever of collapse.

Yet every time it is mentioned, all of the economists / news agencies / wall st traders all react as if it is something they have never heard before. It is maddening to watch. We re-live the same "bombshell" announcement on about a weekly basis. Someone announces the economy is in the toilet and the markets tank.

Dow futures are currently down by 93 points. That's less than a 1 percent drop but that could change before the market opens about 7 hours from now.

I really think a big interest rate cut will only make things worse for most US consumers. Inflation is becoming a big concern. The mortgage rates that consumers must pay seems to be going up now whenever inflation becomes a bigger concern. The price of food and energy seems to be skyrocketing with interest rate cuts. The only people interest rate cuts seem to be helping are the banks themselves and possibly anyone using credit cards if those rates are still going down when the Fed cuts.

Everybody else seems to be getting hurt more now. I'm thinking if the Fed stays the course and doesn't cut rates, that would help the US consumer. It might hurt banks a little and US stocks a little. However a decline in the stock market might be what the US consumer needs to knock prices of food and energy back down. I am curious what the expert economists think about continuing to cut interest rates when inflation is already a big concern. Ben Bernanke and friends excluded since they seem determined to cut rates until Election day no matter how bad inflation gets. Of course he can only cut 3 percent and then he's out of points.

Perhaps with all the derivatives and bank problems, Ben wants equities to stay the same price and not drop significantly or else banks will have to write off more losses and we'll continue in a downward spiral.

I do wonder what would happen if interest rates were not cut. The stock market might plunge a little. Maybe the price of oil and gas would drop along with it. Then many might think we reached a bottom and the price of everything would rally up from there. It's just a thought I had.

[edit on 3-3-2008 by orionthehunter]

I'm waiting on the FED to declare the US in a state of bankruptcy. Once that happens, all will be well, as we can all begin again. It shall be an interesting week though, we can all buy stock in that!!

TheBorg

Oil is the Culprit!!


Oil is the culprit, last weeks rallies early in the week were preceeded by unexpected drops in oil prices, only to see the gains vanish when oil jumped to over $100.00 dollars a barrel, the effects were seen quickly as the dow dropped accordingly, ever notice that trend?? every time the market makes a rally, the jump in oil prices squelch the gains.





[edit on 3-3-2008 by the_sentinal]

[edit on 3-3-2008 by the_sentinal]

It will be interesting to see what happens when the US interest rate is at 0% and it can't go further down... I doubt we will go there but it would be interesting.

reply to post by the_sentinal
Looking at Asia today the end of capitalism seems near. The Wall Street Journal and CNBC can only try to recreate reality for so long. They constantly try to marginalize the economists who are warning that this is the worst economic crisis since the Great Depression, if not worst. The US is in deep trouble, this is why the dollar index hit a record low in Asia today and gold hit a new record high. So much for the greenback as the reserve currency. I agree with TheBorg, the Fed really does need to just stop the lies and decalre that the US is in bankruptcy and a slave to China, who is in financial trouble itself. Thanks Bush and Treasury Secretary Paulson for devaluing the dollar and looting the Treasury. The plan that JP Morgan and other bankers set forth over one hundred years ago seems to have worked.

So I guess I should sell off the remaining stocks I'm holding as this ship seems to be sinking fast, every time I think that way though some crazy rally starts all over again and sucks me back in.

Ouch. Markets are already shooting down. Going to be another long day for some people

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