The Asian and European markets are crashing, and the US market is back below 12k. Is it better that all markets crash at the same time, or just one at a time? If they all go at the same time, does that mean everything is still nicely balanced out?...
03-14-2007, 02:36 PM
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| Banned  Conservative Government is another way to say Better Than You 
| So what happens when all world markets fall?  The Asian and European markets are crashing, and the US market is back below 12k. Is it better that all markets crash at the same time, or just one at a time? If they all go at the same time, does that mean everything is still nicely balanced out? | ||||
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03-14-2007, 02:48 PM
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| Member  Democrat Gothenburg, Sweden
| Well, over here the falls (I wouldn't say "crash" yet, not enough panic!) are blamed on worry over New Century Financial going bankrupt, all it really proves to me when all fall together is that the global economy is well... global. Is it good or is it bad? Hmm, well I don't know all that much about macroeconomy stuff but my gut feeling is that it's better that the economies of the world are connected than everyone hiding in their own little corner protecting their industries no matter the cost. | ||||
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03-14-2007, 02:58 PM
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| Audaces fortuna iuvat  Moderate Northern VA
| This is an issue when dealing with a global economy...there's not much we can do right now. | ||||
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03-14-2007, 03:51 PM
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| Administrator  libertarian Oklahoma
| Asia and Euro markets crashed? Being a bit dramatic aren't we? I read that Asia was down 2.8% and Euro markets down 3.1% primarily in response to the US drop yesterday of about 2%. | ||||
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03-14-2007, 07:30 PM
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| Political Genius  Republican Yorba Linda Ca.
| If the crash in Asia reflects a poor economy the bad news for our market in the long run is that the purchase of U.S. exports will drop. It won't criple our market, but it is a negative.
__________________ Sock It To Me!  "Bureaucracy is a Parasite that Preys on Free Thought and Suffocates Free Spirit!" - Douglas Adams | ||||
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03-16-2007, 08:35 AM
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| minor irritant &/or non-entity News Moderator Contrarian Birmingham, UK
| Originally Posted by ballz2wallz does that happen?
if one goes down does that have some similar effect on the others? isnt this interconnectedness a good thing? or does the exposure of all to some localised weakness/event/idiocy mean that we are 'less' safe? | ||||
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03-16-2007, 08:39 AM
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| Banned Conservative Government is another way to say Better Than You
| Originally Posted by avsp
That's what I'm curious about...all of the theories. | ||||
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03-16-2007, 10:01 AM
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| Administrator libertarian Oklahoma
| Interconnectedness is overall a good thing. However, it can mean that stocks of one country can suffer temporary undue losses if another major player also suffers losses. Markets are driven by emotion and if someone thinks that Europe is going to significantly cut back on consumption and/or production it can have a worldwide affect. | ||||
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03-16-2007, 12:04 PM
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| Member  Conservative
| Originally Posted by ballz2wallz
The issue really depends upon is it fundamentally based or emotional? If it truly is fundamentals...then it could have an impact... However the mental stigma right now is surrounding the old axioms of 100 point or 200 or 300 point drops...which are dramatically less impact than they used to be...the market is at 12,000+ when the market was at 6,000 you know 10 years ago... these old axioms do not adjust as fast as the market has grown... | ||||
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03-16-2007, 02:47 PM
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| Administrator libertarian Oklahoma
| Originally Posted by MTdream Correct, in 1950 a 40 point drop was catastrophic...today its nothing.
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