DOW Down 450 Points On The Open

freydi

Maybe this is it..............http://www.nytimes.com/2008/01/22/business/worldbusiness/23cnd-asiastox.html?hp

Fed Makes Emergency 0.75% Rate Cut

The Federal Reserve, responding to an international stock sell-off and the likelihood of a sharp drop in America on Tuesday morning, cut its benchmark interest rate by three-quarters of a percentage point.

The Federal Open Market Committee lowered its target for the federal funds rate on overnight loans between banks to 3.5 percent, from 4.25 percent.

In a statement, the Fed said: “The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.”

“Moreover,” the statement continued, “incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.”

In a related action, the Fed approved a 75 basis-point decrease in the discount rate, to 4 percent.

Within minutes after the announcement, trading in stock-index futures, which had been presaging a deep slide on American stock exchanges Tuesday, retraced much of their earlier declines, which had been driven by a second sour day in Asia and Europe.

Stock markets across Asia plunged even farther and faster on Tuesday than they had on Monday, as anxious sellers dumped huge numbers of shares on worries that an economic slowdown in the United States could drag down growth around the world.

The European stock markets initially followed their Asian counterparts lower, plunging at the opening and then see-sawing back and forth in frenzied trading as investors looked to the start on Wall Street for direction. After the Fed announcement, they had made up those losses and moved into positive territory. But the rate cut was too late for Asian markets, which had already closed.

A decade after a credit crisis in Southeast Asia triggered an “Asian contagion” of stock market declines around the world, the credit crisis in the United States is now producing an “American contagion” to which no stock market seems immune.

Heavy selling hit each Asian and European stock market as soon as it opened. Some of Asia’s easternmost exchanges, which had closed on Monday before the sharpest declines occurred in India and then Europe, suffered particularly steep drops.

The Japanese stock market dropped 5.7 percent, for the worst two-day loss in 17 years, while the Australian stock market tumbled 7.1 percent, its worst single-day loss in nearly two decades. The Shanghai market lost 7.2 percent while the Hang Seng index in Hong Kong plummeted 8.7 percent.

bisous

Maybe this is what? ........

zamora251978

$#!+ Happens!!!

JH

Financial Armageddon

The third horseman, riding the black horse, is popularly called Famine or Pestilence. The black colour of the third horse could be a symbol of famine. Its rider holds a scale, which could be a representation of the 'scales of pitiless justice' which commonly represent inequality and corruption.

The "a measure of wheat for a penny" from the King James Version might not sound like a famine to modern ears, but in the Worldwide English Version we read "four cups of wheat for bread will sell for a day's wages".

joebin

I don't think it is it yet. The feds saved the day, it won't be that bad.

5go

It's a symptom of dollar collapse that's all.

5go

I don't think it is it yet. The feds saved the day, it won't be that bad.

What are you talking about he just devalued the dollar further! Which is not what the foreign markets want at all. It will most likely lead to them falling more in after hours.

Dismembered

It's only down 91 points now

Dismembered

5go

GLOBAL MARKETS-Stocks plunge despite emergency Fed rate cut

http://www.reuters.com/article/bondsNews/idUSN2249428620080122?pageNumber=1&virtualBrandChannel=0

US dollar slides after Fed springs steep rate cut

LONDON : The US dollar dived against the euro on Tuesday after the US Federal Reserve slashed its key interest rate to combat the turmoil gripping world equity markets, dealers said.

The European single currency bounced as high as 1.4590 dollars after the US central bank announced that it was cutting its key Federal Funds short-term interest rate by three quarters of a percentage point to 3.50 percent.

The euro had earlier traded below 1.44 dollars on Tuesday. - AFP/de

5go

The Fed just slit the throats of the world markets to save the US economy. I don't think they will just stand by and let the Fed get away with that. They will get even by devaluing the dollar further which will cause more problems seeing as the US economy is heavily dependant on imports to survive.

Things are looking pretty bleak for the US right now.

DOW Down 450 Points On The Open

GLOBAL MARKETS-Stocks plunge despite emergency Fed rate cut

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