More than £77 billion was wiped off the value of Britain’s stock market yesterday in its biggest one-day percentage loss since September 11, 2001. Shares across the world plunged over fears that the threatened US recession will undermine the global economy.
London’s leading shares tumbled by 5.5 per cent in brutal market conditions, with the FTSE 100 index losing more than 323 points, its steepest points fall on record, to end the day at 5,578.2.
George Soros, the billionaire investor who prompted Britain’s expulsion from the European exchange-rate mechanism on Black Wednesday in 1992, said the situation was “much more serious than any financial crisis since the end of the war”. Investors were “drowning in a sea of red,” said Henk Potts, an equity strategist at Barclays Stockbrokers.
It’s even worse today. Barring a major intervention by the Federal Reserve; the US Markets can expect a blood bath today.
Ad Orientem, I guess we’ll get to see whether / how much the Fed’s intervention helps. 75 basis point cut announced.
http://www.marketwatch.com/News/Story/Story.aspx?column=Indications
This really adds meaning and emphasis to our prayer, “Give us this day our daily bread.”
Elves. I just saw that. Thank you. I doubt it will prevent steep losses. But it might prevent something close to a panic. See my more detailed thoughts at http://tinyurl.com/3brknv
Keep in mind US markets were closed yesterday, so they have 2 very negative days of global trading to digest. Personally, I am quite curious to see how the Fed rate action is received: yes it will help inter-bank liquidity and reduce some consumer credit rates, but we can also expect the dollar to take a hit, which makes imports more expensive (oil).
So far, the market opened down over 400 but has recovered 75% of that.
If George Soros is losing money, I won’t cry for him.
This is very serious, not only will investor pull outs negatively impact commerce, cause job cuts and economic slow downs, but also will reduce the value of the endowments that TEC needs to keep the doors open and fight all these court battles.
Now is the time to buy.
[i]”When most investors get greedy, I get afraid; and when most investors get afraid, I get greedy.”[/i] – Warren Buffet