Aboutme.SubinFinance - Athens Stock Market Crash & Start of Great Recession
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| "REFORM WILL KILL GREECE" - SAYS EX-FINANCE MINISTER |
Athex, Athens stock index has broken
down by 16.23% as trade started after a gap of five weeks. The main lenders
like Banks like National Bank, EuroBank, Piraeus Bank and Alpha Bank fell more
than 30%. Here in Athens Stock Index, a Fifth of the index is Bank Shares only.
The stocks had fallen more than 22%
and slightly recovered to the current position now. As per the rule set forward
by the European Central Bank, local investors are not allowed to buy shares
now. The money which they have will be kept at home or in safe deposit houses. The
Manufacturing Index as we know will not be showing a good sign as it fell more
than 30% since 1999 and shows negative growth now.
Holly Cook, Editor of Financial
Website Morningstar.co.uk told BBC news that “Not surprising that we’re seeing
all this negativity building up”.
Why????
Athex has plunged to about 182.36
points and later recovered slightly.
United States Dow Jones has fallen
massively at the time of recession, still fighting to come out of it. Still
want to increase the interest rate.United Kingdom is also the same. Now
plan to hike the interest rate.
Greece is half way out of crisis, but still lot of issues seems looming in the economy. Economy is going to contract and there’s only one way if the manufacturing can catch up, we see hope. For this Greece people have to suffer a lot. More Inventions/creation can bring back the economy to the rail. The economy is going to contract by almost 5% this year.
United States is worried about the
Chinese Stock crash in recent weeks is nasty at this stage of time. The more
markets to tumble means the whole economy is facing recession. The world is more
connected and inter-linked if we compare today’s economy with the time of 1930’s
world economy. The world economy is still in the grip of recession.
Reason ………..
We can see how Greek Stocks react
right now.
United States market is also planning
to tumble……..
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| UNITED STATES IS IN RECESSION |
The risk is getting higher and
higher. The stock flush in China is one
of the example how the worse situation market is performing creates havoc among
investors. According to the Private Equity Growth Capital Council Report cited
on the Wolf Street blog points out that exit volume has been surged to about
80% amounting US$ 125 Billion which includes public offering, and financial
investors. Some Crisis is about to come that every investor had figured out.
All the assets are overpriced and are the right time to sell.
This week we’re talking about more
shocks which can trigger fear among the investors are the Economic data of
United States, United Kingdom and Europe.
Example:
Athens Market – 16.23%; Gold – 0.54%;
Dow Jones -0.09%; S & P -0.06%; Europe +0.77%; Asia -0.08%; Shanghai +0.03%.
The reason behind all this is the
misguided policies taken by the Government and also competition between the business
communities. Personal spending in United States has been increased and
Manufacturing needs more impetus to move forward.When United States was in the crisis, the derivative [Debt] explosion was considered to be several trillions and whole stock, money and other market is Billions only. How The United States Government is going to fill the Gap? How many years it will take to fill it? This amount of bad debts is enormous and how much money they've to print to run out these debts?
Besides all this clues and cues,
Federal Reserve Governor commented on increasing the interest rate and all relevant
Bank Governor’s are decreasing the interest rate to create more Gross Output,
employment and growth. Inflation is just increasing in United States and even
Manufacture index is still stagnant.
United States Energy is planning to
cut power plant emission of Carbon Dioxide by 32% from 2005 level by 2030. The
estimated cost is considered to be US$ 8.4 Billion and estimated benefit is
considered to be between US$ 34 Billion and US$ 54 Billion respectively.
Guggenheim Chief Investment Officer
Scott Minerd brings out a convincing theory about Chinese Stock Market crash is
that Margin Debt as percent of Market Cap is high [9%] and the Government must
try to bring it down at the earliest. Otherwise it will be another 1930’s story
to come.
Everyone will be looking at FederalReserve and its policies in the coming week, how they’re going to create growth
in the world economy is another story…………………….
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