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Forums - General Discussion - Recession - Thank you America.

World markets plunge on U.S. fears

 

LONDON, England (CNN) -- Stock markets around the world plummeted Monday, prompted by pessimism about U.S. President George W. Bush's plans to boost the U.S. economy.

From Paris to Mumbai to Tokyo, it was one of the worst days for stocks since the terror attacks of September 2001, as share prices in Asia, Europe and the Americas all plunged by significant amounts; Wall Street only avoided joining the tumble because U.S. markets were closed Monday for Martin Luther King Day.

Markets in Europe reacted with London's FTSE 100 Index down 5.5 percent at 5,578.20; the CAC-40 in Paris down 6.8 percent to 4,744.15; and Frankfurt's DAX dropping 7.2 percent to 6,790.19.

In Japan, the benchmark Nikkei 225 index closed on 13,325.954 points, a slide of 3.9 percent and its biggest dip in two years. Shanghai's Composite index fell 5.1 percent.

 


Hong Kong's Hang Seng index suffered its largest percentage drop since the terrorist attacks of September 11, 2001 when it fell 5.5 percent to 23,818.86 points.

India's Sensex stock index fell nearly 1,353 points or 11 percent -- its second biggest percentage drop ever -- to 17,605.35 points before recovering to 7.4 percent.

The Toronto Stock Exchange opened more than four percent down, falling by 543.13 points to 12,193.13 and taking around US $68 billion off the market's value. A drop of 6.6 percent last week wiped out gains made by the market last year.

Elsewhere in the Americas, stocks in Mexico tumbled by 4.77 percent on opening while markets in Argentina and Brazil fell by 4.64 percent and 6 percent respectively.

The Dow Jones industrial average, which was not trading Monday, finished Friday 0.5 percent down at 12,099.30. It has now lost more than 8 percent of its value since the year began.

On Friday U.S. President George W. Bush announced an economic stimulus plan involving a $145 billion tax relief package.

But investors remain skeptical and are worried that a U.S. slowdown will lead to a global recession.

"I think a lot of people had been hoping that when the new year started that we would find that the U.S. housing market's problems were largely isolated to that market," said Royal Bank of Scotland's Kit Jukes. "Every piece of news we've had since Christmas has argued against that position."

Traders now want to see how Wall Street reacts when it reopens Tuesday. "I think the expectation is the U.S. will open further down tomorrow," said analyst Howard Wheeldon of BGC Partners. "That is a big kick in the teeth for President George W. Bush."

If the United States slips into recession, Americans may buy fewer goods, especially those from overseas. That's why shares from Toyota in Tokyo to BMW in Frankfurt were down heavily.

Among the areas hit hard would be South America, where the United States is the main trading partner for many countries. Banks also fell hard as the lending policy during the boom time continues to concern analysts. Banks and insurance companies also own a lot of equities.

Commodity-led shares, like oil firms and mining companies, were also hit hard, after flying high for most of 2007. If the world economy falters consumers are likely to less oil and buy fewer products like gold and copper.

CNN's Eunice Yoon said investors remain skeptical that Bush's plan will encourage consumer spending.

"What people are wondering here is will those tax breaks actually address some of the main issues - not only the weakness in the financial sector or the weakness in the housing market but will they actually get people spending again.

"People out here in Asia rely very heavily on the consumer in the United States and that's one of the reasons why Toyota, which has about 54 percent of its business in the United States, saw its share price tank this morning."

By only the 14th trading day of 2008, shares in Europe's main markets are now down between 12 to 15 percent on the year. During the market gyrations of 2007, sharp falls were often followed by sharp rises. There is no evidence of that yet in 2008.

 

----

'America kapitalism - Bluugh... you guys can't keep this way of living up forever, your paying the price, and your taking us Europeans down with us! Thanks...'

 

EDIT: My country fell 6.1% in 1 day because of 2 American banks that have money problems, they lent to much cash out to people who couldn't repay their debts... Why would those people even bother lending cash?... Can't they think straight or what...? To top that of. This was the worst day for European stocks since 9/11 and my country fell 18% since the beginning of 2008.

Since Wall Street was closed today i bloody hope the US falls more then 10% tomorrow! Sorry, im pissed right now because the US and their problems with Kapitalism failing are taking their toll on Europe and Asia too.

 



THE NETHERLANDS

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StarcraftManiac said:

World markets plunge on U.S. fears

 

LONDON, England (CNN) -- Stock markets around the world plummeted Monday, prompted by pessimism about U.S. President George W. Bush's plans to boost the U.S. economy.

From Paris to Mumbai to Tokyo, it was one of the worst days for stocks since the terror attacks of September 2001, as share prices in Asia, Europe and the Americas all plunged by significant amounts; Wall Street only avoided joining the tumble because U.S. markets were closed Monday for Martin Luther King Day.

Markets in Europe reacted with London's FTSE 100 Index down 5.5 percent at 5,578.20; the CAC-40 in Paris down 6.8 percent to 4,744.15; and Frankfurt's DAX dropping 7.2 percent to 6,790.19.

In Japan, the benchmark Nikkei 225 index closed on 13,325.954 points, a slide of 3.9 percent and its biggest dip in two years. Shanghai's Composite index fell 5.1 percent.

 


Hong Kong's Hang Seng index suffered its largest percentage drop since the terrorist attacks of September 11, 2001 when it fell 5.5 percent to 23,818.86 points.

India's Sensex stock index fell nearly 1,353 points or 11 percent -- its second biggest percentage drop ever -- to 17,605.35 points before recovering to 7.4 percent.

The Toronto Stock Exchange opened more than four percent down, falling by 543.13 points to 12,193.13 and taking around US $68 billion off the market's value. A drop of 6.6 percent last week wiped out gains made by the market last year.

Elsewhere in the Americas, stocks in Mexico tumbled by 4.77 percent on opening while markets in Argentina and Brazil fell by 4.64 percent and 6 percent respectively.

The Dow Jones industrial average, which was not trading Monday, finished Friday 0.5 percent down at 12,099.30. It has now lost more than 8 percent of its value since the year began.

On Friday U.S. President George W. Bush announced an economic stimulus plan involving a $145 billion tax relief package.

But investors remain skeptical and are worried that a U.S. slowdown will lead to a global recession.

"I think a lot of people had been hoping that when the new year started that we would find that the U.S. housing market's problems were largely isolated to that market," said Royal Bank of Scotland's Kit Jukes. "Every piece of news we've had since Christmas has argued against that position."

Traders now want to see how Wall Street reacts when it reopens Tuesday. "I think the expectation is the U.S. will open further down tomorrow," said analyst Howard Wheeldon of BGC Partners. "That is a big kick in the teeth for President George W. Bush."

If the United States slips into recession, Americans may buy fewer goods, especially those from overseas. That's why shares from Toyota in Tokyo to BMW in Frankfurt were down heavily.

Among the areas hit hard would be South America, where the United States is the main trading partner for many countries. Banks also fell hard as the lending policy during the boom time continues to concern analysts. Banks and insurance companies also own a lot of equities.

Commodity-led shares, like oil firms and mining companies, were also hit hard, after flying high for most of 2007. If the world economy falters consumers are likely to less oil and buy fewer products like gold and copper.

CNN's Eunice Yoon said investors remain skeptical that Bush's plan will encourage consumer spending.

"What people are wondering here is will those tax breaks actually address some of the main issues - not only the weakness in the financial sector or the weakness in the housing market but will they actually get people spending again.

"People out here in Asia rely very heavily on the consumer in the United States and that's one of the reasons why Toyota, which has about 54 percent of its business in the United States, saw its share price tank this morning."

By only the 14th trading day of 2008, shares in Europe's main markets are now down between 12 to 15 percent on the year. During the market gyrations of 2007, sharp falls were often followed by sharp rises. There is no evidence of that yet in 2008.

 

----

'America kapitalism - Bluugh... you guys can't keep this way of living up forever, your paying the price, and your taking us Europeans down with us! Thanks...' 

 


 Yeah it sucks :(.  And who have 10.000 of € on the markets?  Yes me this sucks :(;






With the US in recession, and the rest of the world also pretty much there, how will the video game indsutry fare?

I mean gamings hardly top priority for most people.



You can thank the banks for the recession. Here in the USA banks love doling out credit. You can have no job and no income and get a credit card with a limit of $8000.

As a matter of fact my cousin who has no job has three cards with about $5000 limit on each one. A Credit Crisis is causing the recession. Also, lots of morons who are taking double mortgages on a house then they can't afford the monthly payments which end in foreclosure.

USA defaulting = buy now, pay later.



Now Playing: Crysis 2

Last Finished: BulletStorm

Online IDs: PSN: computermaximus, XBL: computermaximus

I have already lost 1000$ but I did not need that money anyway.



Think twice before helping a friend in need.

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Yes, America is to blame for everything. We suck. We all get it.



Duke Of Darkness said:
I have already lost 1000$ but I did not need that money anyway.

 But that is a marriage ring or 20 games =/.

Hmm cna you miss another 1000$??






Its really f*cked up and Im really pissed :P



Beware, I live!
I am Sinistar!
Beware, coward!
I hunger!
Roaaaaaaaaaar!

 

 

 At least 62 million Wii sold by the end of 09 or my mario avatar will get sad

Don't blame me, I'm spending as fast as I can!



You can find me on facebook as Markus Van Rijn, if you friend me just mention you're from VGchartz and who you are here.

it is really bad if you have invested, but it is also your chance too get in cheap.