Global Crisis - The Biggest Fall Since The 1987 Crash

[Ridzuan AM]

 

 

Ronald Lee

 

Global Crisis - The Biggest Fall Since The 1987 Crash Posted: 10 Oct 2008 02:33 AM CDT Friday, October 10 2008, Asian stocks tumbled on concern the deepening credit crisis will push the global economy into recession. The market’s in a panic mode and it is moving completely out of the norm. Extreme volatility in forex markets are worsening market sentiment. Wall Street’s 7 % plunge on Thursday, closing below the key 9,000 level for its seventh straight day of losses, even the coordinated interest rate cuts by the world’s leading central banks didn’t do much to soften the credit freeze and instill confidence in the financial sector. Remember what happen in 1987 in Asia. Looks like it is happening again as the recession fears sparked a global markets sell-off which continues this gloomy Friday session. By 12 noon, Malaysian time, the blood in Wall Street has spill over and all the Asian benchmark indexes were severely injured. Japan - Nikkei 225 Average lost over 10% Hong Kong - Hang Seng Index plunged over 8% China - Shanghai Composite Index lost almost 5% Korea - KOSPI Index down over 8% Australia - S&P/ASX 200 Index plunged over 7%, Singapore -Straits Times Index dived over 7% Malaysia - Kuala Lumpur Composite Index down almost 3% Indonesia - Jakarta Composite Index down over 10% India - BSE Sensex 30 Index lost over 9% Thailand - Thai Set 50 Index plunged over 8% The credit crunch is spreading fast from the financial sector to other companies; investors are able to take on risk. The G-7 may not be able to repair money markets quickly enough. “It made our hair stand up in panic fear” - Sophocles, Oedipus at Colonus, Greek tragic dramatist (496 BC - 406 BC) a Global Crisis - The Biggest Fall Since The 1987 Crash

 

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