Today's Wall Street Journal, page C1:
"U.S. Stocks Are Doing Better Than Most"
Has data for some 17 countries.
US/DJIA down 7.9%
UK,France, Germany, Russia all down 10.5 to 18.7%
China down 32%
India down 19.3%
Oz down 15.6%
NZ down 14.7%
indiaBPOking eats kitty litter.
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On Mar 30, 11:49 pm, indiaBPOking <indiabpok...@[EMAIL PROTECTED]
> wrote:
> http://english.chosun.com/w21data/html/news/200803/200803190009.html
>
> Is the U.S. economy heading for a total meltdown? A Samsung Securities
> re****t released on Tuesday that cites a hypothesis by economist
> Nouriel Roubini suggests it may be.
>
> "A 12-step scenario for descent to financial disaster presented in
> 2006 by Nouriel Roubini, a professor at New York University's Stern
> School of Business, is turning into reality," the re****t said.
>
> Ultra-pessimist Roubini outlined his 12-step scenario for U.S.
> economic and financial meltdown in July 2006. In the first step to
> financial disaster, he cites the housing recession -- the worst in
> U.S. history.
>
> According to his scenario, the U.S. economy will go from bad to worse
> following these steps: the spread of the subprime mortgage crisis to
> near prime and prime mortgages (step two), credit problems lead to a
> sharp increase in defaults on consumer debt such as credit-cards (step
> three), monoline insurers start to fail, casting doubt on their bond
> ratings (step four), and the commercial real estate loan market begins
> to meltdown (step five).
>
> In the sixth step, a large regional or even a national bank fails,
> prompting the specter of bank runs and forcing the Federal Reserve to
> commit to bailouts. In the seventh step, banks take a hit from
> reckless leveraged buyouts during the credit bubble era.
>
> In the eighth step, a huge wave of cor****ate defaults takes place and
> fear of counterparty risk looms large, deepening the credit freeze. In
> the ninth step, the "shadow banking system" collapses.
>
> In the 10th step, stock markets in the U.S. and abroad sink and the
> S&P 500 loses 25 percent of its value. In the 11th step, credit
> spreads widen, which not only makes the Fed's policy tool of cutting
> rates ineffective, but also spurs a widespread liquidity crisis.
>
> Finally, in the 12th step, the liquidity problems force assets to sell
> at an unwarranted discount, given the assets' underlying value. This
> becomes a downward spiral for all sorts of investments.
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