Markets Wreck
August 4th, 2011Update: FTSE and DAX Are Down Another 2% in Early European Trading
Monitoring…
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Update: Expected Follow Through Sell-Off Across Asia
Via: Reuters:
World stock markets fell for the eighth straight session on Friday to the lowest since late 2010, with more losses feared if policymakers do not come to the rescue soon to stabilise the euro zone’s debt crisis and prevent the U.S. economy from sliding back into recession.
After panic overnight triggered the worst sell-off on Wall Street since the global financial crisis, investors in Asia slashed positions in equities and commodities and scrambled for the safety of cash and government bonds.
Some Asian stock markets fell by more than 5 percent.
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Via: Breakout:
Stocks posted a severe drop today, with the Dow Jones Industrial Average falling 4.3% and the Nasdaq crumbling over 5%.
By the end of the day there were few places left to hide. Gold, silver, crude and yields on Treasuries all fell sharply as traders looked for safety and were met by nothing but falling prices. Over the last 10 trading days stocks have lost more than 10%, the traditional definition of a market correction.
Today’s selling started in Europe and picked up steam as American investors, already twitchy in the wake of the debt ceiling debacle, suddenly preferred cash over all other assets. The selling began overseas, but we have more than our share of problems in the U.S. as well.
There’s a growing realization among even the most optimistic investors that the United States is entering a new recession — a dreaded “double-dip.” Adding to the pain is the sense that the government and Federal Reserve are out of both ideas and ways to stimulate the economy. Corporate America is sitting on record amounts of cash but is refusing to make new investments with so little end demand for its products. Consumers and corporations are hoarding cash, and the economy appears to be seizing. The debt ceiling debate was a fiasco, snuffing any remaining confidence traders had for help from Washington, D.C.
A little levity… sort of
http://dailybail.com/home/e-trade-baby-loses-everything.html