Here's something you might be interested in.
As the credit crisis spreads throughout Europe, Russia, Asia and emerging markets, U.S. stocks plummeted between 3% and 4% today (Oct. 6), after being down 8% at one point, recovering near the session close. The Russian market has been beaten up so badly it has had to close. European banks are running into trouble; markets there took a beating earlier. Bottom line: the age of excessive consumer, governmental and financial industry leverage is over. Debt growth and debt itself will be rolled back. This will plunge nations, particularly the U.S., more deeply into recession. Don't judge economies by the stock market. It is one only moderately effective gauge of the problem. It is mainly a sideshow. Credit markets remain frozen. There is not confidence that the $700 billion bailout just enacted by Congress will have much positive effect.
As the credit crisis spreads throughout Europe, Russia, Asia and emerging markets, U.S. stocks plummeted between 3% and 4% today (Oct. 6), after being down 8% at one point, recovering near the session close. The Russian market has been beaten up so badly it has had to close. European banks are running into trouble; markets there took a beating earlier. Bottom line: the age of excessive consumer, governmental and financial industry leverage is over. Debt growth and debt itself will be rolled back. This will plunge nations, particularly the U.S., more deeply into recession. Don't judge economies by the stock market. It is one only moderately effective gauge of the problem. It is mainly a sideshow. Credit markets remain frozen. There is not confidence that the $700 billion bailout just enacted by Congress will have much positive effect.