Global recession?!

[ghi]

The central bank approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately, and created a lending facility for big investment banks to secure short-term loans. The new lending facility will be available to Wall Street firms on Monday.


http://biz.yahoo.com/ap/080317/fed_credit_crisis.html


Global markets tumble on JPMorgan's rescue of Bear Stearns
http://news.yahoo.com/s/ap/20080317/ap_on_bi_ge/world_markets


Japan's benchmark 225 index sank 3.7 percent to close at 11,787.51 points, its lowest in more than 2 1/2 years. Hong Kong's Hang Seng index fell 5.2 percent to finish at 21,084.61.

Across the Asia-Pacific region, all major stock indexes were down, including markets in Australia, China, South Korea, Indonesia and the Philippines. India's Sensex dropped 5.1 percent in afternoon trading.

"""European stocks fell in morning trading. The U.K.'s benchmark FTSE 100 dipped 2.3 percent to 5,503.6 while France's CAC 40 slid 2.7 percent to 4,468.28. Germany's DAX slipped 3.3 percent. ...."

""The euro rose to a record high $1.5903........."

"....sweet crude for April delivery spiked to a record $111.80 a barrel ..."

 

[Reschke]

I have said it several times before. They are pushing the rate the wrong direction. The US doesn't make enough items any longer to be a viable exporter and we only basically produce housing which is in the toilet because of the rates being cut so much for the last several years.

Get rid of the FED and we get rid of most of our financial problems. Just my unfounded opinion with no basis other than the US Dollar falling against all other worldwide currency.

[Shamus]

This could get interesting, I think the problems are beyond the federal reserves capability of control.

shamus

[SIG220]

_____________________________ _____________


It is far worse than that.   People need to start using the word economic DEPRESSION, not recession.   Even some of the more optimistic "recession" folks have been saying that this recession is becoming so bad, it could last for a full two years.   Well, the reality is that it can easily get far worse, with many more financial investment firms failing like Bears Stern did.  And this can start happening at many banks too, if investors start to bail out of them and start selling off all of their stock, just like what happened to Bears Stern last week. 

The only way that JP Morgan Chase was able to buy out Bear Stearns for the ridiculously low amount of only $2 / share was by getting an emergency $30 Billion loan from the United States Federal Reserve.

On top of all of this, the Hong Kong stock market has this morning dived over 1,100 points, losing over 5 percent of its value in one single day:





You can imagine how all of this bad news is going to affect the US stock market this morning!


Here are more details from this morning's news:

http://www.nytimes.com/2008/03/17/business/17fed.html?bl&ex=1205899200&en=e0949ec94f152e85&ei=5087%0A


_____________________________ ___________________

[myelo]

This could get interesting, I think the problems are beyond the federal reserves capability of control.

Not only can they not fix it they shouldn't try. Bear was one of the major reasons for the mortgage hedge fund crisis. Corporate executives justify their exorbitant salaries by saying they create so much wealth for shareholders. And they want the government to stay out of their business by the way of regulations.

But when their stupid decisions force the company to go tits up, they go running to the Fed for support. The CEOs probably end up losing their job, but with multimillion dollar golden parachutes.

The market, especially the subprime mortgage crisis, needs a correction. You can't stop that. The more the federal government tries, the worse it's gonna be when it's all said and done with.

[Curval]

Be kinda funny to do a search and find out all the people who were saying how healthy the US economy was about a year ago (because the stock market was trading at record levels) and who poo pooed any suggestions that the policies at that time had dire consequences.

Also would be interesting to see who claimed that the US economy was just that...the US economy...and non Americans have no business commenting on it.

[Shamus]

Not only can they not fix it they shouldn't try. Bear was one of the major reasons for the mortgage hedge fund crisis. Corporate executives justify their exorbitant salaries by saying they create so much wealth for shareholders. And they want the government to stay out of their business by the way of regulations.

Oh I wholeheartedly agree, but if you can privatize profits and lay off losses on the public, I guess it would be human nature to do so.

shamus 

[ghi]

  I was thinking if the world economy would work without stocks as source of capital, only with loans and get rid of sensitive virtual global stock markets working as heart of economy?

We need jobs,goods and services daily. If tomorrow i can't buy milk and toilet papper because those companies colapse due to a stocks buy/sell game, that doesn't mean peoples don't need their products/services.

 Looks like this economic system centralized around stock markets  won't work in a globalized economy,  it"s going to colapse soon, openig the way for Illuminati and "Novus Ordo Seclorum" , "666" bio chips on our foreheads to buy and sell, and the Antichrist.

[Xargos]

John Adams said privately owned banks are more dangerous to America then a standing army, and the Federal Reserve is privately owned.

[SIG220]

 Looks like this economic system centralized around stock markets  won't work in a globalized economy,  it"s going to colapse soon, openig the way for Illuminati and "Novus Ordo Seclorum" , "666" bio chips on our foreheads to buy and sell, and the Antichrist.

If that is gonna happen, I better go buy a lot more ammo for all of my guns fast!!

My current supply that I have in my house might not last that long in case of all out anarchy.   This is all that I have on hand presently:

[Yeager]

one little "accident" sig, and your stockpile is worthless.......to you 

[SIG220]

one little "accident" sig, and your stockpile is worthless.......to you 

Fortunately, I am a non smoker.   I would hate to have a fire in my house.

The fire department might not even respond.


_____________________________ _________

[SIG220]

I see that all of the major European stock markets got hit bad today too.

United Kingdom:  Down 2.7 %

Germany:    Down 3.6%

France:       Down 3%


We are all doomed!!   

[Maverick]

Just another indication that the globe and the major nations are all economically interlinked. It's proof that no one major industrialized nation can stand by itself in full self sufficiency any longer. In fact it has been that way for quite a long time.

[Ripsnort]

The world economy has been here before though. We (the world) will recover.  The hardest hit will be those baby boomers who are about ready to retire, or currently retired.

Those US banks that over extended on sub prime really screwed our economy.