Black Monday!

January 21, 2008

Thank God today is a holiday in America. Thanks to the Martin Luther King national holiday, our markets are closed. No market crash today! So, the question is have we moved from a Black Monday to a Dark Tuesday instead? There simply is no sensible or rational way that we can avoid a BAD TUESDAY short of the government and Fed fixing the market, cooking the books, and all that stuff that doesn’t really happen in an open market. Right?

You know it happens! Stuff happens. Recessions happen!

What has started off as one of the worst starts to the new year since the Depression isn’t getting any better. The Dow is down nearly, 1,200 points in a little more than a dozen traing days. Thankfully, we get to prolong the pain until Tuesday. But, here’s what’s happened around the rest of the world on BLACK MONDAY!

The stock market was in meltdown today as nearly £60billion was wiped off London shares. Sixty BILLION! And we’re not talking cheap US$’s either. A combination of poor economic figures and the worsening global credit crunch sent the FTSE 100 plunging.

At one stage the drop was the biggest since 9/11 in 2001, although the index of Britain’s biggest companies later clawed back some of the losses.

Investors were left unimpressed by the US government’s tax-relief plans to stimulate the economy and as a result, the U.K. benchmark FTSE-100 dropped 4.7 percent to 5,625.20; France’s CAC-40 Index plunged 5.9 percent to 4,793.39, while Germany’s blue-chip DAX 30 slumped 6.74 percent to 6,821.42. Hey folks, 5-7% drops are MAJOR!

In Asia, India’s benchmark stock index tumbled 7.4 percent, while Hong Kong’s blue-chip Hang Seng index plummeted 5.5 percent to 23,818.86, its biggest percentage drop since the Sept. 11, 2001, terror attacks. Are you getting the picture? And all the American investors can do on this holiday is sit and pray that Black Monday won’t be quite so dark come Tuesday

That America’s triple AAA credit rating is in trouble isn’t the only issue. What about the credit rating of the entire global economy? We’ll know more on Tuesday!

Written by Ernie · Filed Under Daily Commentary

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One Response to “Black Monday!”

Market Meltdown! on January 22nd, 2008 8:22 am

[...] low will the Dow go this Tuesday? Having escaped Black Monday, thanks to the Martin Luther King, Jr. holiday, investors could only sit and wait, and worry. Do [...]

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