Global markets plunge on U.S. recession fears

Discussion in 'Politics & Religion' started by guru-seo, Jan 21, 2008.

0
Page 1 of 2
  1. #1
    guru-seo, Jan 21, 2008 IP
  2. bogart

    bogart Notable Member

    Messages:
    10,911
    Likes Received:
    509
    Best Answers:
    0
    Trophy Points:
    235
    #2
    Bank of China is expected to announce a significant writedown on its U.S. subprime mortgage securities
     
    bogart, Jan 21, 2008 IP
  3. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #3
    I am quite worried on the China side, their major exchanges are all bubbles waiting to explode so is their property market. Anything happens to China may see them withdrawing funds out of USA and that would be a vicious cycle.
     
    wisdomtool, Jan 21, 2008 IP
  4. Briant

    Briant Peon

    Messages:
    1,997
    Likes Received:
    78
    Best Answers:
    0
    Trophy Points:
    0
    #4
    Briant, Jan 21, 2008 IP
  5. guru-seo

    guru-seo Peon

    Messages:
    2,509
    Likes Received:
    152
    Best Answers:
    0
    Trophy Points:
    0
    #5
    I think a lot of investors are jumping ship and this could have some serious consequences for our economy.
     
    guru-seo, Jan 21, 2008 IP
  6. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #6
    It is a public holiday in USA today, so we do not know the DJ and Nasdaq reactions, but I am keeping my fingers crossed. The global markets plunge real bad. Hopefully no Black Tuesday :(
     
    wisdomtool, Jan 21, 2008 IP
  7. soniqhost.com

    soniqhost.com Notable Member

    Messages:
    5,887
    Likes Received:
    96
    Best Answers:
    0
    Trophy Points:
    240
    #7
    Not everyone believes we are in a recession or are going to be in one.

     
    soniqhost.com, Jan 21, 2008 IP
  8. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #8
    Well I hope he is accurate, I don't wish to start tightening my belts :(

     
    wisdomtool, Jan 21, 2008 IP
  9. smatts9

    smatts9 Active Member

    Messages:
    1,089
    Likes Received:
    71
    Best Answers:
    0
    Trophy Points:
    88
    #9
    Wall Street is going to get it's teeth kicked in tomorrow.
     
    smatts9, Jan 21, 2008 IP
  10. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #10
    Well Nikkei is down about 4.5% while the Hang Seng Index is down about 8%, does not look good to me at this moment of time.
     
    wisdomtool, Jan 21, 2008 IP
  11. deluxdon

    deluxdon Catch Me If You Can...!!!™ Staff

    Messages:
    25,482
    Likes Received:
    1,943
    Best Answers:
    32
    Trophy Points:
    480
    #11
    Indian stock market crash :eek:

    Stop trading for one hour due to 10% lower circuit.

    DON.
     
    deluxdon, Jan 21, 2008 IP
  12. bogart

    bogart Notable Member

    Messages:
    10,911
    Likes Received:
    509
    Best Answers:
    0
    Trophy Points:
    235
    #12
    There's no need to wait until tomorrow. The big boys are already unloading on the futures market and after hours trading.
     
    bogart, Jan 22, 2008 IP
  13. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #13
    Really can't gauge using the futures too, sometimes when it showed a rise, it can do a drastic u-turn and become a drop and vice versa, the current sentiments are simply unpredictable :(

     
    wisdomtool, Jan 22, 2008 IP
  14. smatts9

    smatts9 Active Member

    Messages:
    1,089
    Likes Received:
    71
    Best Answers:
    0
    Trophy Points:
    88
    #14
    So I was completely wrong about them getting their teeth kicked in lol, but seems like this whole drop was caused by one dude from France, haha.
     
    smatts9, Jan 24, 2008 IP
  15. bogart

    bogart Notable Member

    Messages:
    10,911
    Likes Received:
    509
    Best Answers:
    0
    Trophy Points:
    235
    #15
    A rouge trader at French Bank Société Généralerogue racked up 7 billion in bad trades and the closing of the positions triggered the panic.
     
    bogart, Jan 24, 2008 IP
  16. soniqhost.com

    soniqhost.com Notable Member

    Messages:
    5,887
    Likes Received:
    96
    Best Answers:
    0
    Trophy Points:
    240
    #16
    It didn't start the panic because the panic started in Asia and spread but because the bank had to sell a lot of positions in small increments because dumping would of caused further panic it didn't allow the market to rebound.
     
    soniqhost.com, Jan 25, 2008 IP
  17. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #17
    What's worse it is started by more or less a junior trader, which brings out the questions, about the control and control portion of SG, wonder what they have got to say.
     
    wisdomtool, Jan 25, 2008 IP
  18. soniqhost.com

    soniqhost.com Notable Member

    Messages:
    5,887
    Likes Received:
    96
    Best Answers:
    0
    Trophy Points:
    240
    #18
    They say because he once worked in the back office he knew how trades were processed so that he was able to by pass risk controls. The thing that surprised me is that he didn't do it for personal Financial gain.
     
    soniqhost.com, Jan 25, 2008 IP
  19. wisdomtool

    wisdomtool Moderator Staff

    Messages:
    15,826
    Likes Received:
    1,367
    Best Answers:
    1
    Trophy Points:
    455
    #19
    If there are really proper risk controls, I don't think anyone can bypass it or it won't be called risk controls in the first place. IMHO not really a good excuse.

     
    wisdomtool, Jan 26, 2008 IP
  20. bogart

    bogart Notable Member

    Messages:
    10,911
    Likes Received:
    509
    Best Answers:
    0
    Trophy Points:
    235
    #20
    All the damage the last week was caused by one rouge trader. Who knows what kind of subprime suprises there are and what can of damage will be caused to the market.
     
    bogart, Jan 26, 2008 IP
Page 1 of 2