Reactions to story from The Wall Street Journal

• 

  Stocks Tank Ovenight; US Futures Down Sharply

  http://www.nakedcapitalism.com/2008/10/stocks-tank-ovenight-...
  57 days ago in naked capitalism · Authority: 1,776

  So much for the idea that the bailout bill would produce a relief rally. Overseas equity markets are taking a beating. No word yet on how the credit markets are faring. Investors are finally waking up to the notion that it isn't just the US financial system that is in trouble, but that pretty much every advanced economy (save Japan, although Canada has yet to produce any bad headlines) has a banking system in not-so-good health. And economies that may indeed have sound banks will nevertheless be pulled down by the large number of institutions in their trading partners that are afflicted. Update 5:30 AM; The reaction seems to be worsening as trading moves west. The FTSE is down 5%; Dow futures, however, are still down 220ish points. MacroMan is relatively sanguine: The market's vote of no confidence in Europe has been more acutely observed in the currency market, where recent EUR/USD resembles nothing so much as a band of lemmings jumping off a cliff. Was it really only two weeks ago that EUR/USD had its biggest daily gain in the nearly ten-year history of the single currency?... So global equities are a sea of red, but as of yet today's weakness is relatively controlled; there's no sense of panic. Macro Man cannot help but think that risks of a global, coordinated rate cut have risen substantially, particularly after the ECB left the door open for an intra-meeting cut last week. It is perhaps this possibility that has kept today's European sell-off relatively orderly. As suggested last week, the front end of Europe has firmed, with the Schatz future trading up nearly half a point from Friday's settlement price. From Bloomberg: Stocks tumbled around the world, the euro fell to a 13-month low against the dollar and oil dropped below $90 a barrel as the year-long credit market seizure caused bank bailouts to spread through Europe. Government bonds rallied. Russia's Micex Index fell 12 percent, leading declines among benchmark stock indexes. BHP Billiton Ltd. slid 8.9 percent and UBS AG lost 8.6 percent as
• 

  Monday Market Meltdown - Global Edition

  http://tradinggoddess.blogspot.com/2008/10/monday-market-mel...
  57 days ago in Trading Goddess Stock Blog! · Authority: 95

  Total market carnage! That's what we're waking up to today. We may be finally getting into oversold territory but the waves of panic are coming from across the globe and it's going to be hard to fight this tide. On the way down on Friday, at 1:47 we

Advertise on Technorati