(Image courtesy of Bloomberg)Although I predicted wrongly that the markets were going to drop on Monday, I was at least correct in the conclusion that they were going to end up sinking like rocks by the end of the week, which seems to be what is happening right now.
The Dow closed 733 points down on fears of 'recession', which I think is the understatement of the year. Why is all the media gently saying 'on fears of recession' or in order to 'avoid recession' when a more appropriate word for it would be a total catastrophe? Even the Bloomberg article at the bottom says that the Asian stocks are sinking due to 'concerns' of recession.
So the sinking is continuing, and the UK is already proposing a solution through the 'reform of the global banking system.' Gordon Brown said the IMF should be "rebuilt" to help regulate the world's financial systems. And Angela Merkel and Nicolas Sarkozy are both calling for 'better international supervision of the financial system.'
I think the IMF, World Bank or some new agency created to regulate global banks will have a very important role in shaping how this financial crisis will play out...
More readings:
BBC - EU Leaders Seek Broad Bank Reform
BBC - G8 Backs Financial Reform Summit
Reuters - Markets Tumble as Recession Fears Trump Bailout
Bloomberg - Asian Stocks Slump on Recession Concerns
Bloomberg - Europe Aim for Global Bank Rules Meets US Objection
The Dow closed 733 points down on fears of 'recession', which I think is the understatement of the year. Why is all the media gently saying 'on fears of recession' or in order to 'avoid recession' when a more appropriate word for it would be a total catastrophe? Even the Bloomberg article at the bottom says that the Asian stocks are sinking due to 'concerns' of recession.
So the sinking is continuing, and the UK is already proposing a solution through the 'reform of the global banking system.' Gordon Brown said the IMF should be "rebuilt" to help regulate the world's financial systems. And Angela Merkel and Nicolas Sarkozy are both calling for 'better international supervision of the financial system.'
I think the IMF, World Bank or some new agency created to regulate global banks will have a very important role in shaping how this financial crisis will play out...
More readings:
BBC - EU Leaders Seek Broad Bank Reform
BBC - G8 Backs Financial Reform Summit
Reuters - Markets Tumble as Recession Fears Trump Bailout
Bloomberg - Asian Stocks Slump on Recession Concerns
Bloomberg - Europe Aim for Global Bank Rules Meets US Objection
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