Market Panic In Asia As Stocks Slump

[Rinrada]

Lets hope they are wrong ...perchance.....

Warning about US economic slump

By Tim Weber

Business editor, BBC News website, in Davos(with thanks)

The global economy is going through some unsettled times

The US economy is set for a long recession, a panel of economists at the World Economic Forum has warned.

The US mortgage crisis will spread to consumer and company loans, and push up defaults sharply, warned New York University economist Nouriel Roubini.

A year ago, Mr Roubini had been one of the few economists to predict correctly a slump in the US housing market and subsequent crunch in credit markets.

China and Europe will be hit, though India less so, the panel forecast.

George S...(Sorrows.......hope not...)

The billionaire investor George Soros has said it will be "very difficult to avoid" recessions in the US and the UK.

In an interview with BBC News, Mr Soros said he supported the US Federal Reserve's surprise interest rate cut, which bolstered global stock indexes.

"You do have to rescue markets otherwise you would go into a depression, as you did in the 1930s."

He also said that the current market turmoil is a sign of global influence shifting to the developing world.

'Shift of power'

"I'm not looking for a worldwide recession," he said.

"I'm looking for a significant shift of power and influence away from the US in particular and a shift in favour of the developing world, particularly China."

He added that authorities have trusted markets too much over the past 20 years.

"The authorities came to rely on the markets to right themselves," he said.

"But they ought to have known better because they have in the past come to the rescue."

Mr Soros was the man reported to have made $1bn profit in September 1992, betting correctly that the British currency would have to be devalued and leave the European Exchange Rate Mechanism.

http://news.bbc.co.uk/1/hi/business/7204159.stm

[usatrader]

Recession: The Newspaper Definition

The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for twenty-four or more consecutive quarters. This definition is unpopular with most economists for two main reasons.

First, this definition does not take into consideration changes in other variables. For example this definition ignores any changes in the unemployment rate or consumer confidence. Second, by using quarterly data this definition makes it difficult to pinpoint when a recession begins or ends. This means that a recession that lasts ten months or less may go undetected, which is incorrect

A recession is traditionally defined in macroeconomics as a decline in a country's real Gross Domestic Product (GDP) for two or more successive quarters of a year (equivalently, two consecutive quarters of negative real economic growth). However this definition is not universally accepted but has been the most used standard of most economists for many decades now.

en.wikipedia.org/wiki/Recession

A recession is defined (in economic terms) as two consecutive quarters (3 month periods) of declining GDP (gross domestic product). In financial terms, you can see a forthcoming recession observing the the interest rate yield curve of long vs short term loans. If this curve is inverted, 99% of the time, a recession is inevitable. The US currently has an inverted yield curve.

GROSS DOMESTIC PRODUCT: THIRD QUARTER 2007 (FINAL)

CORPORATE PROFITS: THIRD QUARTER 2007 (REVISED)

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 4.9 percent in the third quarter of 2007, according to final estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8 percent.

http://www.bea.gov/newsreleases/national/g...newsrelease.htm

^DJA DOW JONES COMPOSITE INDEX 4,150.35 4:06pm ET 160.70 (4.03%) Components, Chart, More

^DJI DOW JONES INDUSTRIAL AVERAGE IN 12,270.17 4:05pm ET 298.98 (2.50%) Components, Chart, More

^DJT DOW JONES TRANSPORTATION AVERAG 4,464.57 4:04pm ET 293.68 (7.04%) Components, Chart, More

^DJU Dow Jones Utility Average 503.77 4:06pm ET 16.83 (3.46%)

^ATX ATX 3,685.22 11:36AM ET 83.06 (2.20%) Components, Chart, More

^BFX BEL-20 3,460.00 12:07PM ET 88.65 (2.50%) Chart, More

^FCHI CAC 40 4,636.76 12:10PM ET 205.78 (4.25%) Chart, More

^GDAXI DAX 6,439.21 11:45AM ET 330.26 (4.88%) Chart, More

^AEX AEX General 417.13 12:07PM ET 16.14 (3.73%) Chart, More

^OSEAX OSE All Share 445.07 10:29AM ET 8.87 (1.95%) Components, Chart, More

^MIBTEL MIBTel 24,882.00 11:40AM ET 979.00 (3.79%) Components, Chart, More

^IXX ISE National-100 90.93 5:00PM ET 1.83 (2.05%) Chart, More

^SMSI Madrid General 1,329.70 11:41AM ET 56.89 (4.10%) Components, Chart, More

^OMXSPI Stockholm General 299.34 11:45AM ET 9.27 (3.00%) Chart, More

^SSMI Swiss Market 7,356.13 11:31AM ET 131.79 (1.76%) Chart, More

^FTSE FTSE 100 5,609.30 11:35AM ET 130.80 (2.28%) Components, Chart, More

I am sure I have read countless times, for decades, that America is no longer relevant in the world...OOPS!!

It seems they are, or more importantly, we ALL, one, and ALL, are relevant in codependent existences and prosperity to and for each and all more so now than ever in all of history.

A drowning man, who shouts its their fault we are all drowning, does little to nothing about his own perilous circumstances except to show his inattentiveness to it, just pos other's situation, which may or may not be similar in codependent circumstances and interactive processes. Hey!!

Negativity and cynism are not tools of widsom, truth and problem's resolve, they are merely excuses for taking the easiest path of blaming others, by the weak of heart, spirit and resolve.

Thanking you in advance for any personal and or America flaming, forthwith.

[LaoPo]

I'm puzzled what you're trying to say in your post #32 as it's difficult to 'read'.

LaoPo

[usatrader]

I'm puzzled what you're trying to say in your post #32 as it's difficult to 'read'.

LaoPo

I am truely regretful that you are puzzled. I tied to be clear with the image, the numbers and the topical substance interelationship, just pos to posts #29, #30 and # 31?

[Jai Dee]

TBA former chairman: FED’s rate cut helps shore up economy

The former chairman of the Thai Bankers' Association, Khunying Chada Watthanasiritham (ชฎา วัฒนศิริธรรม), views that the US Federal Reserve's decision to lower the interest rate can help support the economy, and it will not considerably affect Thailand’s economy. She says the decision of US President Gorge W. Bush was rightly made, adding that the implementation will not significantly influence the Thai economy, thanks to the strong support from the country’s tourism and export sectors.

Khunying Chada however would like the new Finance Minister to possess extensive experience and knowledge in economics and be able to address economic problems well. She says the economic situation must be closely monitored as anything can happen.

Source: Thai National News Bureau Public Relations Department - 24 January 2008

[Jai Dee]

EXIM maintaining interest rates

The Export – Import Bank of Thailand (EXIM) President, Mr. Narongchai Akaraserani (ณรงค์ชัย อัครเศรณี), claims that the interest rates of Thai financial institutions are still the same. He however suggests the Bank of Thailand (BOT) to fill up the gap between the deposit and loan interest rates.

Mr. Narongchai views that with effective management, the gross domestic product (GDP) growth rate of this may stand between 4.5 and 5.5 percent. He says its growth, however, would depend on the global economic situation as well as the sub-prime mortgage crisis in the United States of America.

Meanwhile, the Deputy Chairman of the National Economic and Social Advisory Council (NESAC), Mr. Vorapol Socatiyanurak (วรพล โสคติยานุรักษ์), calls on the new government to pay more attention on regaining investors' confidence and addressing economic problems.

Source: Thai National News Bureau Public Relations Department - 24 January 2008

[Jai Dee]

SET Chairman confident market soon to be healed

The Stock Exchange of Thailand (SET) Chairman, Mr. Pakorn Malakul na Ayudhya (ปกรณ์ มาลากุล ณ อยุธยา), expresses his optimism on Thailand's economic situation despite the outflow of investment to other foreign markets. Mr. Pakorn says he believes foreign investors will eventually return and buy out their recent sold-off shares in the Thai bourse, as they are worried about the consequences from the US sub-prime mortgage crisis.

Although the average share prices in the SET this year have decreased by about 13 to 14 percent, Mr. Pakorn says the foundation of each share in the stock market is still strong and effective. The SET Chairman says he is confident that re-investment will happen soon. He says once the new government is ready to administrate, the move will be also a positive factor to push the market forward.

Source: Thai National News Bureau Public Relations Department - 24 January 2008