"All right I'm going to clarify it again, the subprime mortgage problems are 'well-contained' to planet Earth."
Posted on 1/7/2008, 7:25:26 AM by TigerLikesRooster
◆Nikkei extends losses to 4 days, closes at new 17-month low
TOKYO, Jan. 7 KYODO
Japan's key Nikkei stock index closed at a fresh 17-month low Monday, extending its losing streak to four straight trading days, on worries the U.S. economy may be heading for a recession.
The 225-issue Nikkei Stock Average, which tumbled by more than 600 points, or 4 percent, on Friday, the first trading day of the year, lost an additional 190.86 points, or 1.30 percent, to 14,500.55, for its lowest finish since July 2006.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 19.20 points, or 1.36 percent, to 1,392.71.
Despite their prices dropping to reasonable levels following Friday's plunge, stocks remained under selling pressure throughout the day due to ''turbulence in the external environment of the Japanese stock market,'' said Toshikazu Horiuchi, equity strategist at Cosmo Securities Co.
He was referring to falls in U.S. and other stock markets overseas and prospects for a U.S. economic slowdown following Friday's release of weak U.S. jobs market data.
Investors were also ''supersensitive'' to declines in other Asian stock markets such as Hong Kong, Horiuchi added.
Marine transport, iron and steel, glass and real estate issues led the fall.
Of the 33 sectors on the TSE, insurance and air transport issues were the only gainers.
==Kyodo
It has been a regular pattern in Wall St.. Several days of downward slide followed by a sudden jump. If no such event occurs today, then....
Ping!
Or it could go down by that much also.
cheaper by the bushel!
I would expect the same in Korea....
;-)
There seems to be a lot of pessimism, not only in the markets, but in society in general lately. As they say, the markets can remain irrational longer than most people can remain solvent. If oil were to go back to $60.00/barrel or less that would be a very good thing. Especially if the Fed continues to cut rates.
On fears of recession in U.S.A.
DJ Industrials tending to open up 70 right now.
yitbos
yitbos
While I agree that $60.00 oil would be outstanding for the economy and maybe make people a little more optomistic, I’d have to disagree with the rate cuts. Since oil is sold internationaly in $s, the price of oil generally goes up when the fed cuts rates. If you look at the price of oil in Euros, it hasn’t really changed that much over the past few years. For instance, if oil cost $96.00/bbl for us, the Europeans are still only paying E64.92/bbl. Rate cuts drive the dollar down, while at the same time drive the price of oil and other commodities up. IE gold at $870.00/oz
IMHO, it is really weird that the MSM and the like talk about a global crunch because of the US’s sub-prime orgy and at the same time the Feds cut interest rates as to intentionally devalue the dollar even more and drive up the price of oil here in the US. What’s up with those contradictory moves? My conclusions are that the US’a economy is on very shaky ground.
"All right I'm going to clarify it again, the subprime mortgage problems are 'well-contained' to planet Earth."
The Fed’s interest rate cuts are to save the big banks. There’s really nothing more to it than that.
I'm going to go out on a limb with the "this time it's different" argument. Because the sub-prime fiasco has the potential to create a global credit crunch & financial meltdown, I believe the central banks in Europe & Canada will follow with their own rate cuts. Additionally, it's my belief that there is a global glut of oil and that the oil cartel is fracturing again as always seems to happen when oil hits a new record high. The US is in the beginning stages of a serious economic downturn, but lower rates & cheaper oil should make a big difference as to it's length & magnitude.
Over the next few months I believe we will begin to learn more about the sub-prime fiasco how much bigger it is than anyone has admitted so far. One big positive of a cheaper dollar is that it will make buying real estate in the US a real bargain for those living in countries with stronger currencies. If all goes well, the economy should start picking up just in time for the fall 2008 election.
The Asian market have been following the DJIA recently rather than anticipating. DJIA was about level today.
Well, also going out on a limb, I know that many upper-level, well-paid ‘worker’ do nothing but analyze current laws and markets to come up with means to circumnavigate honest business practices to earn a quick buck. The sub-prime fiasco with all involved seem to indicate this without a doubt. The dot.com scenario all over again.
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