Stocks Fall in Europe, Asia on Economy Concern; BHP, Shell Drop

[Adsos Letter]

Source: Bloomberg

Oct. 16 (Bloomberg) -- Stocks declined in Asia and Europe, with benchmark indexes from Tokyo to Budapest falling more than 6 percent, on growing concern bailout plans in the U.S. and Europe will fail to avert a global recession. U.S. index futures advanced.

Japan's Nikkei 225 Stock Average sank 11 percent, and South Korea's Kospi Index slumped 9.4 percent. Oil dropped to a 13- month low, extending its decline from a July record to more than 50 percent. BHP Billiton Ltd. lost 5 percent and Rio Tinto Group slipped 7.5 percent on speculation the slowdown will slash demand for metals.

``Investor confidence has been hammered,'' said Henk Potts, a London-based fund manager at Barclays Stockbrokers, which has about $45 billion in assets under management. ``There is a considerable amount of unease about how deep the recession could be. There simply aren't any buyers around.''

``There has been a realization recession has arrived and it's going to be deep-seated,'' David Buik, a market analyst at BGC Partners in London, said in a Bloomberg Television interview. ``The banking-rescue act seems to have gone on the back burner.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aT868NgmEelM&refer=worldwide

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Anyone...?

[Eurobabe]

1. Hey, from

across the pond. Drowning in a sea of red ink.

But MissHoneychurch and I are off to Paris this weekend. Let them eat cake! :rofl:

[Adsos Letter]

2. Hey back atcha!

I am off to give a lecture on Frederick Douglass and David Walker...PLEASE try not to foment any revolutions while you two are among the French...although it would make for some interesting TV! :D

Have a great time! :hi:

[Ghost Dog]

4. Perish the thought.

:evilgrin:

[RainDog]

3. I really think the "market" is so far behind reality

People who buy groceries or medication or a host of other things know that inflation has already sucked buying power from Americans.

Productivity has not reflected economic well being for years...that one has been a republican talking point to deny reality.

any sort of report issued/approved by the White House is as worthless as a Milken junk bond, as far as I'm concerned.

The continuing problem with the market now is that the media and others are actually telling the truth. Which means the shell game is up - and that's why markets are panicked.

That, and the game of trying to see who will dump dollars and who will hold. Oh, and wondering if we'll have both recession and hyperinflation if the fed actually prints all that promised money.

I haven't been watching the currency market this week. AFAIK, the dollar is still up - which, to me, means it will be heading for a biiiiggggg fall when the next round of reality sinks in. But who knows, I could be wrong.

[WriteDown]

5. You do realize the article is referencing Europe?

This unfortunately is a world-wide phenomenon.

[RainDog]

6. yes. as you said, it's worldwide

but my thinking is within the context of living in the U.S. and dealing with all the fall out here.

From what I understand, European money geeks have been worried about the impact of U.S. financial issues for years - but of course, they had banks who bought into the ponzi scheme mbs's too. (I always think "Master of Bullshit" when I type that... and that reminds me of MBAs, ahem.)

As far as Asia - How stable is Japan, I wonder, after their currency crisis of the 1990s? (Krugman wrote about that a decade ago, btw, warning about the fate of the U.S. economy.)

Then China - they've bought so many $$ - at one point, maybe last year, I read about the game of chicken among various nations - wondering who would be the first to jump out of dollars --not wanting to hurt their own economies, but not wanting to be left holding lots of devalued greenbacks.

We haven't gotten to that point yet, afaik.