Tuesday, January 22, 2008

Disconnect -- or reconnect

Alluva sudden stock markets around the world are falling/plunging/capitulating for no apparent reason? Isn't the subprime mess contained as an America-specific problem?

This quote from six weeks ago:
"it is hard to believe in a paradigm of disconnect in a world of finance hard wired to the same trading screens".

the current crisis appears on track to be at least as bad as the five most catastrophic financial crises to hit industrialized countries since World War II.

Economic fears cuff Asia; India, Hong Kong slide
Recession fears spark heavy selling; Japan, China, South Korea also slump


Stocks in Europe become bearish after huge loss
Worst single-session since Sept. 11, 2001


Latin America Stocks Drop, Enter Bear Market, on Growth Concern

Canadian stocks drop sharply in opening trade

Mexico's Peso Falls the Most in 10 Weeks on Global Stocks Rout

U.S. stock futures point to major decline on re-open


The ASX200 index plunged 2.9 per cent, or 166.9 points, to 5580.4 yesterday in its biggest one-day fall in a month, and the broader All Ordinaries fell 168.5 points, to 5630.9 - the longest run of losses since January 1982.

Bank of China Ltd. appears increasingly likely to report a large write-down on its investments in U.S. mortgage securities, illustrating the broadening reach of the global financial downturn -- and how one of China's biggest lenders was less astute at avoiding the problem than it initially thought.

And this quote from a few days ago:
"the feeling is becoming more pronounced that maybe, just maybe, the market will finally break rather than just bend and give us the proper bear that many bear hunters have been looking for."

But maybe the best quote of the day is from Blackadder IV, courtesy of BBC, courtesy of FT Alphaville:
This is a crisis. A large crisis. In fact, if you’ve got a moment, it’s a twelve-storey crisis with a magnificent entrance hall, carpeting throughout, 24-hour porterage and an enormous sign on the roof, saying ‘This Is a Large Crisis’. A large crisis requires a large plan. Get me two pencils and a pair of underpants!

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