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Actually as much as I like to blame everything on George Bush, the stock markets crashing have little to do with him...or politics in general. Bad political news may make a particular day rough, but usually never for the long term. Ditto good political news.

This is the usual cyclical market. We've had a bull market for quite awhile. Add to that the greed of the bankers on the sub-prime mortgage fiasco, oil prices, etc. and we're now going into a bear market. Everyone just as to ride it out.

As much politicians like to take credit for bull markets and politicians campaign on economic issues, at least for the U.S., the Federal Reserve is the group that directs the economy.
 

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Stock markets plummet big time across Europe

what do you guys make of that? :eek:

to put it with ron paul: "...people are being robbed..."

unfortunately everything went down the drain today. i was hoping for a stock market crash since i'm mostly in commodities, but as it turns out, they've had their fair share of today's washout as well...


i wonder what wall street is up to tomorrow. could be something in the makin'...

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http://www.spiegel.de/international/business/0,1518,530010,00.html

MARKETS CRASH ACROSS EUROPE
Experts Warn of Stock Market Hysteria

By Anselm Waldermann

Markets crashed all across Europe Monday, with Germany's DAX losing 7 percent of its value. But analysts advise against panic -- in fact, they say, now might be a good time to pick up some cheap stocks.

Five percent, 6 percent, 7 percent: For the German DAX stock market index, Monday was a day of steep falls. A €1 billion loss at the bank WestLB, combined with the fears of a global recession (more...), helped push the DAX beneath the psychologically important 7,000-point mark.

It wasn't just the DAX which was hard hit. London's FTSE 100 index also fell 4.5 percent, while in Paris the Cac-40 dropped 4.6 percent. Elsewhere the Tokyo Nikkei 225 index fell by 3.9 percent. US markets were closed for a public holiday, however.

Is the DAX now set to keep falling? No, say experts. "It looks dramatic at the moment, but it is not as bad as it seems," Matthias Jörss, head of equity strategy at the leading private bank Sal. Oppenheim, told SPIEGEL ONLINE. "We have gotten used to rising prices over the years -- especially in Germany. Now we are simply seeing a correction."

There had been signs that a crisis was looming. Every investor knew that the US mortgage crisis was bound to have consequences -- the only question was when. "At the beginning of the year, the market hid all the risks," says Jörss. "It was clear that things were first going to get worse before they got better."

One should not assign too much significance to the current dip, Jörss advises. Stock prices, he points out, are not entirely rational. "If you go onto the trading floor and spread a rumor about a share price, then everyone will believe you," Jörss says. He believes that a further decline in the DAX to 6,600 points is realistic. "If there is bad news, then it can of course go even lower," he says. "But actually we are considering writing reports which are more positive than negative. We are slowly finding many attractive stocks." In other words, prices are so low that it could be worth investing at the moment.

'We Are Seeing an Avalanche'

The trigger for the market crash was the news from WestLB on Monday morning. Over the weekend, the bank had to admit to a billion-euro capital requirement because of misguided investments on the US mortgage market. "At first they gave the impression that they had nothing to do with the cheap loans in the US -- and then suddenly €2 billion were missing (more...)," chides Jürgen Kurz of DSW, a German association which represents private investors. "That unsettles the market tremendously. The result is panic selling like today." Other banking stocks fell into the downward spiral. "What we are seeing is an avalanche," says Kurz.

The crucial question for investors is: What comes next? Kurz sums up investors' concerns: "Have all the banks revealed all their losses -- or is there still something lurking?"

Nevertheless, Kurz himself appears optimistic. "The situation in the real economy is OK. In addition, there is enough liquidity available, including from, among other sources, sovereign wealth funds." This money is looking for places to invest -- and almost automatically flows into the stock market because of low interest rates.

The DSW therefore advises calm. Private investors could even take advantage of the current stock market trough to slowly start buying shares again. "If you're looking at a time horizon of five to six years, you can't go too far wrong with a solid company," says Kurz. "Weak phases are perfectly suited for investing." Only investors who are absolute pessimists should hold off. "But then you basically shouldn't be buying shares," Kurz says.

Kurz considers banks in particular to be "solid companies" whose share prices will rise again. "Banks will still be around in 30 or 40 years. The existing system cannot get by without them." Of course, banks have a tendency to take high risks, he says. "But the business model in itself works. As soon as the risks are out, the institutions will once again make high profits."

Nevertheless, there are certain lessons which should be learned from the current crisis, says the DSW. "We need more transparency and greater responsibility from boards," says Kurz. In addition, he says, risk management must be improved. "It's not acceptable that a bank can take enormous off-balance-sheet risks within the framework of some kind of special purpose entity. These kinds of bodies should not be allowed to exist." The financial authorities should now introduce a strict regulatory framework, he says.
 

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Re: Stock markets plummet big time across Europe

we had some kind of a crash today here in Germany after out-performing all other European stock markets in 2007

this bush really has done nothing good for the world let alone for his own country :retard:
 

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Re: Stock markets plummet big time across Europe

we had some kind of a crash today here in Germany after out-performing all other European stock markets in 2007

this bush really has done nothing good for the world let alone for his own country :retard:
hör' doch mal bidde auf mit diesem ständigen bush-palavern, ernsthaft. nachdem ich über manche deiner beiträge im gm forum durchaus schmunzeln kann und du in gewisser weise durchaus situationskomik zu verstehen scheinst, habe ich gerade angefangen, dich ein kleines bisschen zu verstehen/mögen/akzeptieren. mach' nicht sofort wieder alles kaputt mit diesem elendigen ami-herumgebashe. so etwas steht einem erwachsenen menschen wie du es offenbar bist (27) einfach nicht gut zu gesicht.

und wenn du es von mir schon nicht hören willst: dann tu' es einfach für deutschland und unseren ruf hier. ;) :)

english-mode on. :cool:

i don't think it's completely about bush, it has a lot do with the fed (not roger ;) ) in the states which was led by greenspan back in the days, flooding the market with gazillions of dollars. volatility now more and more kicks back in many ways.

at least that's what i got somewhere in the news. :shrug:
 

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Re: Stock markets plummet big time across Europe

It's all over the world, not only in Europe. Actually, today it all started in Asia with a Chinese bank. Brazilian stock market is closing at around -6%. :sad:
 

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They're continuing to plummet. :scared: I pulled all my money out of the stock market in the summer, seeing that this would probably happen.

I just don't really get it. The only reason this happens is because silly people panic. Stock markets in general just seem like a silly thing to me. Oh well. Byebye money, byebye US dollar values. Hello massive inflation thanks to an idiotic Federal Reserve.
 

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They're continuing to plummet. :scared: I pulled all my money out of the stock market in the summer, seeing that this would probably happen.

I just don't really get it. The only reason this happens is because silly people panic. Stock markets in general just seem like a silly thing to me. Oh well. Byebye money, byebye US dollar values. Hello massive inflation thanks to an idiotic Federal Reserve.
The markets are extremely efficient. I don't know about "massive crash"...back in the 1987 'triple witching hour' crash they lost 20% of net capital.--(I don't know what it was in 1929...)

Ya gotta look to the long haul. If you believe in a company...oh, well, I'd like to be a day trader, too. :)
 

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Georgie Porgie has no control over the world economy anymore. If other countries start dumping our bonds, however...

we had some kind of a crash today here in Germany after out-performing all other European stock markets in 2007

this bush really has done nothing good for the world let alone for his own country :retard:
Why don't you quit complaining? Bushy hasn't done shit for our country.
 

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hey! why did you close my thread and let bilbo open another one with exactly the same topic?
Since the threads are of same topic, they are merged. And as usual, the one that's open later will be merged into the one that's open earlier. Look at the time of bilbo's post and yours in this thread and you can figure out who's thread came first. :shrug:
 

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The Federal Reserve needs to be shot. Cutting interest rates another .75 percentage points. :rolleyes: Morons.
with knowledge of the 1929 market as well...dammit. Too much credit distorting the markets

if people traded long term like it was meant to be...

Perfect for us 20-somethings to pick up the pieces if the market truly crashes :] All I see is opportunity but anyway, too bad we didn't elect Ron Paul...the only one who gives a damn.
 

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The Federal Reserve needs to be shot. Cutting interest rates another .75 percentage points. :rolleyes: Morons.
The risk of recession on the American economy is much bigger than the risk of inflation, that's why they did it.
 

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The risk of recession on the American economy is much bigger than the risk of inflation, that's why they did it.
Bernanke is a smart fellow but this seemed more like a knee jerk reaction. I guess we'll see if this will really turn out to be a crash in the coming weeks
 

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Since the threads are of same topic, they are merged. And as usual, the one that's open later will be merged into the one that's open earlier. Look at the time of bilbo's post and yours in this thread and you can figure out who's thread came first. :shrug:
oops. you're right, lee, sorry about that. i must've missed bilbo's thread then. never mind. :eek:
 
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