Asian stocks plunge as confidence evaporates

[Up2Late]

Source: AFP

Asian stocks plunge as confidence evaporates

16/08/2007 04h10

TOKYO (AFP) - Asian stock markets buckled Thursday as jittery investors rushed to dump shares after another rout overnight on Wall Street, with no sign of an end to the tremors emanating from the US mortgage sector. From Tokyo to Sydney, Hong Kong to Singapore, weary dealers' screens were awash with red again as fears over the fallout from problems in US credit markets continued to buffet stock markets around the world.

Seoul reeled from its biggest ever one-day points plunge, down more than six percent in morning trade.

Market watchers said that confidence had drained out of the markets, so even though many stocks look cheap there is no obvious trigger on the horizon for a rebound in global stock markets. "Investors have moved from being super-optimistic to super-pessimistic in a very short space of time. Really, there is no sign of this ending," said CommSec equities economist Craig James in Sydney.

Oil prices fell as traders fretted that the current market turmoil could put the brakes on the global economy, hitting energy demand. The yen gained sharply on the euro and dollar, lifted by growing risk aversion....

Read more: http://www.afp.com/english/news/stories/070816040538.9lr28q83.html

---

Have we ever had a "Black Thursday?"

[Neshanic]

1. Line one for you Mr. Poole...it's a Mr. Calamity wanting to speak to you.

Poole Says Only `Calamity' Would Justify Interest-Rate Cut Now

By Anthony Massucci and Kathleen Hays

Aug. 16 (Bloomberg) -- William Poole, president of the St. Louis Federal Reserve Bank, said the subprime mortgage rout doesn't threaten U.S. economic growth, and only a ``calamity'' would justify an interest-rate cut now.

[onewholaughsatfools]

2. the fed has put in 45 billion is the last ten days

the fed put in 45 billion, europe put in 385 billion, this is serious stuff, i suggest everyone cash in and keep you money liquid.. that does not mean put it in a bank.....blessings

[Neshanic]

5. Oh, whats a couple of billion? Goldman Sachs needs to be protected!

[Up2Late]

6. I still remember what Jon Stewart said as he closed the December 13, 2000 Daily Show...

BUY GOLD!!!!! :argh:

Man, do I wish I took that advice. :banghead:
I posted it to my first YouTube account back in the Summer of 2006, but it got deleted in October 2006 (when they deleted that first account).

[lapfog_1]

9. Its well over 150 Billion

When the contributions from the European central banks are added in.

This is going to be a bumpy ride.

What if an interest rate cut doesn't do the trick? The dollar will be in free fall soon (inflation)...

and then the Chinese decide to dump their T-bills and move their assets to a harder currency...

[JNelson6563]

13. "Tell him I'm not here!"

said Mr. Poole as he hid under his desk. ;-)

[defendandprotect]

3. Turned Olbermann off tonight because of nonsense ....

Don't see anywhere that the prez candidates are being asked about this -- ???

I'm sure that Dennis Kucinich would be willing to give us an indication of what he thinks is going on if anyone will ask him!!!

[ChairmanAgnostic]

11. not to worry. Cabe is covering Elvis.

far more impotent

[lovuian]

4. one must ask a Global Recession in the works

let the other nations Buy

[Up2Late]

7. Damn London's FTSE lost more than 100 point (2.2%) in about the first 5 minutes!!!

This is gonna be REALLY ugly today!

Thursday, 16 August 2007, 07:23 GMT 08:23 UK

Global markets continue to fall

London's FTSE 100 fell below the 6,000 level on Thursday as uncertainty over the impact of losses in the US sub-prime lending market persisted.

The index of leading UK shares lost 2.2% to 5978.2 points in early trading on the back of heavy falls in Asia and further declines on Wall Street.

Concern about the state of world credit markets saw the US Dow Jones index close below 13,000 on Wednesday.

Japan's Nikkei index lost 2% with shares down 3.7% in Hong Kong.

The FTSE has not fallen below 6,000 during a trading session since March this year. It last closed below 6,000 in October 2006.

In the US, the Dow ended 1.3% lower at 12,861.5 points, the first time it has closed below 13,000 since 24 April.

(more at link) <http://news.bbc.co.uk/2/hi/business/6948916.stm>

http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/overview/img/3+bbc-thumbnail_thick-line+intraday.png
FTSE
http://newsvote.bbc.co.uk/2/shared/fds/hi/business/market_data/overview/img/2+bbc-thumbnail_thick-line+intraday.png
Dow Jones

[closeupready]

12. Tomorrow (Friday) will probably be uglier.

That is traditionally a worst day of a bad trading week.

[Up2Late]

8. BoJ (Bank of Japan) to inject 400 billion yen into banking system (AFP)

BoJ to inject 400 billion yen into banking system

16/08/2007 08h14

TOKYO (AFP) - The Bank of Japan announced Thursday an injection of 400 billion yen (3.4 billion dollars) into the banking system amid renewed turmoil in global financial markets.

It was the first time in three days that the BoJ had pumped emergency funds into the financial system as part of a concerted action by global central banks to try to avert a credit squeeze caused by problems in US mortgages.

On Wednesday and Thursday the BoJ had drained a total of 3.6 trillion yen from the domestic banking system -- more than the amount it had pumped in over the past two working days -- as fears of a domestic credit squeeze faded.

The Japanese central bank's latest injection came after the Tokyo stock markets tumbled for a second straight day in early deals after another rout overnight on Wall Street....

(more a link) <http://www.afp.com/english/news/stories/070816012820.hbkxaj6w.html>

[Javaman]

10. It gonna be another great day!!! nt

[Up2Late]

14. Paulson says U.S. economy can withstand turmoil: report (Translation: "Bite me")

Paulson says U.S. economy can withstand turmoil: report

Thu Aug 16, 2007 1:39am ET161

TOKYO (Reuters) - U.S. Treasury Secretary Henry Paulson said the turmoil in global markets will "extract a penalty" on growth but the financial system and economy was strong enough to withstand it without provoking a U.S. recession.

"The economy and the markets are strong enough to absorb the losses," Paulson told the Wall Street Journal in an interview published on its Web site on Thursday.

Paulson also said the repricing of risk in markets should not surprise anyone and was inevitable, and that nothing should be done to guarantee market players against losses or restrain them from taking risks.

© Reuters 2007. All Rights Reserved. <http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-08-16T053951Z_01_TKW002844_RTRUKOC_0_US-PAULSON.xml>