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Crash! Biggest fall in shares since September 11 - Independent Online Edition > Business News

t was the day that the fear factor took over. From Asia to South America, share prices tumbled yesterday as the world's investors gambled that a US recession was now inevitable. In London, the City endured its darkest day since the nadir of 9/11. What Alan Greenspan once called the "irrational exuberance" of traders gambling on rising asset values has gone. In its place, a deep-rooted pessimism has taken hold.

In a single session, a massive £84bn was wiped off the value of Britain's biggest companies, as the FTSE 100 index plummeted by 5.5 per cent, closing 323.5 points lower at 5578.2. Last week the index dipped beneath the 6,000 mark for the first time since the credit crunch began in August. It was the eighth consecutive day of losses. Since Christmas Eve, the FTSE has dropped by almost 1,000 points and last night analysts were predicting further falls.

While President George Bush has authorised an economic rescue package to address the US sub-prime crisis, market experts believe the plan has come too late. And no one believes the world's other major economies will remain unscathed as America plunges into an economic downturn. For the world's biggest companies, recession in an export market as vital as the US can only spell trouble.

by Fran on Mon Jan 21st, 2008 at 11:15:34 PM EST
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Pretty clear now that a US recession cannot be just shrugged off by China or the rest of the world.

Looks pretty ugly our there.

by HiD on Tue Jan 22nd, 2008 at 12:40:41 AM EST
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If you owe China a billion dollars, it's your problem.  If you owe China a brazillion dollars, it's China's problem.

We all bleed the same color.
by budr on Tue Jan 22nd, 2008 at 10:41:28 AM EST
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there was a speical programme on Radio4 this morning. It was strange how the analysis seemed pretty accurate on what had gone wrong and why. However, it was equally disconcerting to hear City brokers and analysts speaking confidently about how the Far East will bail them all out and how there are plenty of other markets gagging for investiment and "don't worry, the markets won't tolerate strict regulation so we'll all be back on the gracy train tomorrow".

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Jan 22nd, 2008 at 11:46:42 AM EST
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Let's not forget that when someone says "the markets will like this or hate that", what it expresses is the will of the wealthy. One dollar, one vote. Welcome back to censitary voting.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Tue Jan 22nd, 2008 at 12:08:08 PM EST
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