October 09, 2008
|Stocks Crash In Asia||Economy|
Tomorrow could be ugly. Bloomberg:
Asian stocks tumbled, driving Japan's Nikkei 225 Stock Average down as much 11 percent, and U.S. futures fell on concern the deepening credit crisis will push the global economy into recession. [...]
"It's a financial panic," said Choi Min Jai, who oversees the equivalent of $2.1 billion at KTB Asset Management Co. in Seoul. "The recession can only get worse. You can't find the link that will break the vicious cycle."
The MSCI Asia Pacific Index lost 4.9 percent to 87.86 as of 10:33 a.m. in Tokyo. The measure is poised to drop 16 percent this week, the biggest slump since the index was created on Dec. 31, 1987. Only four stocks gained in the 990 member gauge. [...]
All Asian benchmark indexes dropped. Japan's Nikkei plunged 9.8 percent to 8,264.65. Australia's S&P/ASX 200 Index tumbled 5.7 percent. Today's slump left the Nikkei valued at 9.9 times earnings and the S&P/ASX 200 at 11 times profit, the lowest for both indexes since at least April 2000, when Bloomberg started keeping track of the data. [...]
MSCI's Asian index is down 42 percent this year as mounting mortgage-related losses at financial firms caused credit to dry up, toppling banks including Lehman Brothers Holdings Inc. and slowing global demand for Asia's exports.
U.S. stocks tumbled yesterday, wiping out almost $900 billion in market value, with the Dow Jones Industrial Average closing below 9,000 for the first time since 2003. The Standard & Poor's 500 Index slid 7.6 percent to 909.92, capping a seven-day decline, the longest losing streak since 1996.
The article refers to today as yesterday, because in Asia it's tomorrow. If you see what I mean.
Today the US stock market wiped out $900 billion. In one day. In just the US. Gives you some perspective on the size of the forces at work. Paulson and his $700 billion fund really don't stand much of a chance.
If this keeps up, one day very soon we may see a day like October 19, 1987. There don't seem to be any buyers left.