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Posted: 1/21/2008 10:40:39 AM EST
www.thisislondon.co.uk/news/article-23433407-details/Black+Monday+as+biggest+FTSE+crash+since+911+­wipes+off+nearly+£60bn+in+shares/article.do


The stock market was in meltdown today as nearly £60billion was wiped off London shares as fears of a US recession sparked a global sell-off.

The bloodbath saw the Footsie plummet by 5.5 per cent, losing 323.5 points to close at 5578.2 - its biggest one-day points drop since the September 11 terrorist attacks in 2001.

The Footsie has now fallen by around 10 per cent in the last 10 days, by around 15 per cent over the last month and is well on the way to being off 20 per cent since its most recent high of 6754 in July - before the world's banking system was sent spiralling.

It is also the worst start to the year for the stock market since records began in 1936.

"I smell the acrid stench of fear and uncertainty," said markets commentator David Buik of BGC Partners.

Shares across Europe also dived and Asian stock markets suffered heavy overnight losses as fears over the health of the world's biggest economy swept through markets across the globe.

The falls followed Friday's falls for the Dow Jones Industrial Average on Wall Street, when investors were left unimpressed by the US Government's tax-relief plans to spur on the economy.

Rumours that Bank of China may become the latest banking giant to reveal a financial hit from the collapse of America's sub-prime mortgage market also tested investor nerves

The fall in the Footsie came after figures revealed a record government borrowing deficit for December of £7.8billion.

Howard Archer of forecasters Global Insight said: "The Chancellor's target of cutting public sector borrowing next fiscal year now looks like wishful thinking."

Big fallers included Wolseley, the building supplies company, which reported a 40 per cent drop in profits.

...


Discussion topic: Does the next recession start Tuesday?
Link Posted: 1/21/2008 10:42:51 AM EST
Black monday on MLK day? Thats racist.
Link Posted: 1/21/2008 10:43:08 AM EST
Yup looks like recession will be happening sooner than many thought.... I think this is good though, lets get this shit over with, These things happen and we hopefully will come out stronger then we were before.
Link Posted: 1/21/2008 10:43:35 AM EST

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.



I was thinking the same thing.
Link Posted: 1/21/2008 10:45:43 AM EST

Originally Posted By 1GunnerHogan1:

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.



I was thinking the same thing.


HAHAHAHAHA

I didnt reven recognize

Link Posted: 1/21/2008 10:59:02 AM EST
It used to be said that if America's economy caught a cold, the rest of the world would catch the flu. I'm not so sure that is the case given how interrelated the global economy has become in recent years, but it's tough to look at these numbers and not gasp. Note that it wasn't just London's FTSE that got hammered today. The German DAX and French CAC 40 dropped about 7% each. HOLY SH!T! I would guess there's going to be some angina on Wall Street tomorrow.

If you have money in the market for the long haul, then this sort of thing is likely to be just a bad memory some time from now. I've seen enough downturns to know that the market is cyclical and our economy is resilient. And I'm confident in the economic underpinnings of America. On the whole, we're smarter, harder working and more innovative than any other country on this planet. This too, we will survive.

Link Posted: 1/21/2008 11:00:17 AM EST

Originally Posted By Bluewaterheaven:
Yup looks like recession will be happening sooner than many thought.... I think this is good though, lets get this shit over with, These things happen and we hopefully will come out stronger then we were before.


I wish more people realized this.
Link Posted: 1/21/2008 11:01:00 AM EST
I swear, it's like lemmings. All those stockmarkets running to fail, simply because everyone else is.
Link Posted: 1/21/2008 11:01:22 AM EST
I figure probably a 5% drop tomorrow, a 2% increase the next day, then down for the week.
S&P is already down ~14% since the record high, and almost even with a year ago.
Link Posted: 1/21/2008 11:01:53 AM EST

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.
Link Posted: 1/21/2008 11:05:42 AM EST
The GDP has to shrink for two consecutive quarters for there to be a recession. We are nowhere close.
Link Posted: 1/21/2008 11:06:22 AM EST
Recession is here. Watch our own market drop on Black Tuesday. Yep, that's racist.
Link Posted: 1/21/2008 11:15:47 AM EST

Originally Posted By skygod:

Originally Posted By Bluewaterheaven:
Yup looks like recession will be happening sooner than many thought.... I think this is good though, lets get this shit over with, These things happen and we hopefully will come out stronger then we were before.


I wish more people realized this.


Its funny that they don't... I personally don't see this one being much worse then what happened after 9/11 but you never know.

anyway the market needs to correct itself, it s super inflated.

If you have your money invest wisely you should be fine anyway, you will take a hit, but nothing too bad. It is the people who invest in one thing and believe that what they invested in will always stay strong, that are screwed
Link Posted: 1/21/2008 11:15:49 AM EST
What goes up must come down, oh well, no more Brazilian rodizio, and get the Sunday coupons for Steak & Shake.
Link Posted: 1/21/2008 11:16:52 AM EST
woot!!!

i lost so much in my 401k during the past 2 months, i could have paid cash for a new car
Link Posted: 1/21/2008 11:30:56 AM EST
[Last Edit: 1/21/2008 11:31:26 AM EST by warlord]
People pooh-poohs the US dollar and the US. But when the US goes into a recession(a mere inconvience), the rest of the world is dying from a depression. The US economy is bigger than the next #2(Japan), #3(Germany), #4(China), & #5(UK) economies put together.

For the folks with a strong fortitude, now is the time to seek out good deals in growth stocks.

btw: now is NOT the time to buy Au/Ag because they are at near record highs.
Link Posted: 1/21/2008 12:31:26 PM EST
It likely won't be permanent or devastating. It's a pretty typical correction, though there's no judging the length of such things.

On the other hand, anyone who thinks it won't be noticeable is smoking something. 2002 was a bad year for a whole lot of people.



If you've refinanced your home, or are looking to sell in the next three years, or have heavy debt, you're in for trouble.
Link Posted: 1/21/2008 12:41:10 PM EST

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.



yer goin to hail fer that

Link Posted: 1/21/2008 12:45:03 PM EST
S&P futures open in 15 minutes, i've never been this eager.
Link Posted: 1/21/2008 12:45:58 PM EST

Originally Posted By supersix4:

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.



yer goin to hail fer that



thread got locked for calling it black monday about an hour ago ..
Link Posted: 1/21/2008 12:46:12 PM EST
SELL, SELL, SELL!
Link Posted: 1/21/2008 12:49:58 PM EST
I hear they are double checking all window locks from 2nd floor on up.


It's too late to sell.
Link Posted: 1/21/2008 12:50:36 PM EST
The Australian stock exchange has lost all of 2007's gains in the last 3 weeks. So far its the biggest fall since 1987.

Interesting times ahead...
Link Posted: 1/21/2008 12:52:22 PM EST
Tomorrow should be interesting. Perhaps the capitulation many have been looking for. Ready to sell the puts and buy the calls.
Link Posted: 1/21/2008 12:52:36 PM EST

Originally Posted By CZ75_9MM:
SELL, SELL, SELL!


Yeah, if people keep doing that ... it will be "buy buy buy" for me...
Link Posted: 1/21/2008 12:54:48 PM EST
Link Posted: 1/21/2008 12:54:56 PM EST
Another case of THE MAN trying to blames his troubles on a brother.
Link Posted: 1/21/2008 12:57:47 PM EST

Originally Posted By Michael_B:
Black monday on MLK day? Thats racist.

Link Posted: 1/21/2008 1:35:00 PM EST

Originally Posted By Lert:
The Australian stock exchange has lost all of 2007's gains in the last 3 weeks. So far its the biggest fall since 1987.

Interesting times ahead...


Agreed.
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