Did Tommy study economics, perchance?
This whole recession thing... Page 6
No matter how you slice it, I'd call a 65% drop in the stock market over a year's time to be an indicator of economic troubles.
The world's markets undertook an unsustainable growth over the last 3 years or so and now they're correcting. China's feeling it, India's feeling it, everybody's feeling it.
This article from The Wall Street Journal says the treasury could make as much as $2 trillion from the bailout:
Quote: Aaron @ September 26 2008, 3:51 PM BSTDid Tommy study economics, perchance?
Nah, International Relations - have to study all the economies as part of that. Particularly Asian ones (given Australia's geopolitical position).
Quote: DaButt @ September 26 2008, 3:54 PM BSTNo matter how you slice it, I'd call a 65% drop in the stock market over a year's time to be an indicator of economic troubles.
The world's markets undertook an unsustainable growth over the last 3 years or so and now they're correcting. China's feeling it, India's feeling it, everybody's feeling it.
This article from The Wall Street Journal says the treasury could make as much as $2 trillion from the bailout:
It seems a dramatic fall, but put it in context - it is in fact a rise over 2 years. We can expect a drop in China's market corresponding to the global downturn; my point is, the Western economies are feeling it far more than China.
Re. the bailout - even if Treasury make $2 trillion, it won't mean much if the dollar is devalued. If the US mints more cash to spend on the bailout, it will fall into the inflation trap. Couple that with a lack of growth and you've got stagflation, which is basically the worst position for a capitalist economy to be in. Depression would be a near-certainty.
Quote: Tommy Power @ September 26 2008, 5:00 PM BSTIt seems a dramatic fall, but put it in context - it is in fact a rise over 2 years. We can expect a drop in China's market corresponding to the global downturn; my point is, the Western economies are feeling it far more than China.
The same can be said about the American Dow Jones index. China's economy is also in a very precarious position.
How d'ya mean? If China goes down, US goes with it. Previously, China needed US more than vice-versa, but now US is reliant on China and China is looking elsewhere for investment.
The problem isn't the stockmarket per se; the problem is US vulnerability to recession and potentially depression. There's been no '29-style crash yet, but it is becoming more likely. I don't know about the dow jones, but the fundamental fragility of the US economic position may not be reflected in present data anyway.
I agree, I suck at economics but I think it's pretty easy to see with all the money and trade China has invested in the US anything bad that happens to them will reflect poorly on the Chinese markets.
HEY! Just like us! yaaaay North American Free Trade agreement. 
More news about my (former) bank:
Nice work — if you can get fired from it.
That's just what one Alan H. Fishman might have thought when he woke up Friday morning.
Fishman was the new chief executive officer for Washingon Mutual — WaMu — the nation's largest savings and loan, which was taken over Thursday night by federal bank regulators and quickly dumped in a fire sale to JPMorgan Chase for the Wal-Mart-like price of $1.9 billion.
But don't cry for Fishman, who reportedly was sky-high — literally — last night, on a flight from New York to Seattle, when WaMu collapsed. Even though he's only been on the job for less than three weeks, he's bailing out with parachute worth close to $20 million, according to an executive compensation analysis conducted for the New York Times by James F. Reda Associates.
That's right, $20 million for 17 days on the job ... and his company failed.
Fishman, who formerly was chairman of Meridian Capital Group, apparently was much coveted by WaMu, which was counting on him to lead the failing thrift out of mortgage troubles that pushed the bank to a $3.3 billion second-quarter loss.
Flipping Norah. I'm in the wrong industry.
This article says that Fortis and Wachovia may fail next week:
http://weeklystandard.com/Content/Public/Articles/000/000/015/636zbhel.asp
Haven't heard of either, but blimey, it just gets scarier by the day.
Quote: DaButt @ September 27 2008, 8:26 PM BSTThis article says that Fortis and Wachovia may fail next week:
http://weeklystandard.com/Content/Public/Articles/000/000/015/636zbhel.asp
Obviously not the best people to watch-over-ya money. 
Sorry, Chapman's not here.
Quote: Aaron @ September 27 2008, 8:41 PM BSTHaven't heard of either
Looks like Fortis is Dutch. My health insurance card used to say "Fortis" on it, but I think my employer has changed providers since then.
Breaking news: http://news.bbc.co.uk/1/hi/world/7640143.stm
*sigh*
bollocks to that let them go under. Greedy wankers this is all their doing all the bank managers should have their wages slashed, that'd give the bank a good few million quid back.
F**kers.
End.