Stock Markets Plummet Across the Globe

August 5, 2011

Stock Markets Plummet Across the Globe

Thursday was a day of massive stock market falls in Europe and the US of a kind not seen since the last economic downturn, traders said the atmosphere was reminiscent of the banking crisis of October 2008. Wall Street endured one of its worst days since the height of that crisis, with the Dow Jones Industrial Index closing more than 500 points or 4.3% lower at 11,383 in heavy volume, as it resumed a two-week streak interrupted only briefly on Wednesday. It was the biggest single-day loss since 2008.

Traders said concerns over the United States’ economic growth are accelerating the decline in share prices. Investors were said to be tensely awaiting the coming US labor market report on Friday. Many are assuming it will deliver further disappointing news. “If the situation on the markets in recent days was demoralized, then after yesterday’s losses on the US markets, it is moving into the direction of panic,” one trader said. Another contributing factor affecting investors was an unsuccessful effort by the European Central Bank to reassure the markets which instead ended up spooking investors. The bank intervened with a show of support to buy bonds of some smaller countries, but not Italy and Spain, whose mounting troubles have come into the spotlight. This was taken as a sign that the recent rescue packages by Europe could soon be overwhelmed by the huge debt burdens in those two countries.
Washington’s reaction to the market’s tumble was muted. The Treasury Department said it did not plan to issue any statements or provide officials to comment.“Markets go up and down,” said the White House spokesman, Jay Carney. “We obviously are monitoring the situation in Europe closely.”

Friday the Labor Department reported that employers added 117,000 jobs for July which was better than the 85,000 net new jobs that was forecast. The unemployment rate dropped slightly, from 9.2 percent to 9.1 percent. The labor market numbers may have brought a sigh of relief to many traders, but it was not enough to provide much comfort to those who have been waiting for the recovery to kick into high gear.


Publisher: Salient News

2 comments on “Stock Markets Plummet Across the Globe”


Well, it looks like the party is over. I guess all we have the look forward to the next Great Depression which will once again be a worldwide depression with no clear signal as to how we are going to come out of it. People do funny things when they have no money. Take a good look at what happened to France during the French Revolution or Germany right before Hitler took power, everybody was looking for a leader. Unfortunately, people start really suffering (and they will start suffering very soon in America) they will grasp at any kind of government and leader to pull them out of this mess. Unfortunately, the only kind of leader you’re ever going to get is one that will want to take advantage of everything and set themselves up as a despot; forget about finding another George Washington that’ll never happen again. Now that America is crashing, the rest of the world is as well. Well, Duh. Who else was giving the rest of the civilized world business, money every time a calamity happened, military protection, and the ability to have dual citizenship and take advantage of every freedom that we have. Yeah, we were real smart all right. In our wisdom we became as fools and thought we could take care of the entire universe financially, boy was that a stupid strategy. I guess in light of all of this financial calamity we can send John Kerry and Hillary Clinton out on another plane to see if India has flooded again or not and whether we should give them another hundred million dollars. Sure, I can blame the Republicans too they also had a massive hand in this, but since the Democratic leadership said that they could fix everything at the last election, I expect to see something better than what we have seen. And don’t give me any of this crap how Obama “inherited” this position. As I remember, he said he had a clear understanding of what was going on and how to fix it. Don’t believe me? Go check it out on YouTube you can watch all of his old speeches and town hall meetings where he had it so together. And I do understand that he did not create this entire problem we’ve been acting stupid like this for the last 50 to 100 years. Somehow we got the idea that we could take care of the entire planet and not face any consequences for it. Well, we should’ve learned from Philip the second of Spain who hog more real estate than anybody in history. You can’t have it all, because it’s way too expensive and you sure as heck can’t control everything because you will go broke . Oh well, America; it was a great party while it lasted.

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