Stock Drop Pulls 38 of the World's Biggest Stock Indexes Into Bear Market; Banks Lead the Plunge

[Purveyor]

Source: Bloomberg News

Jan. 22 (Bloomberg) -- Almost half of the world's biggest stock indexes fell into a bear market as mounting concern about a U.S. recession dragged down banking and retail shares across Asia, Europe and Latin America.

The MSCI World Index's 3 percent decline yesterday, the steepest since 2002, left benchmarks in France, Mexico, Italy and 35 other countries at least 20 percent below their highs in the last year. The Standard & Poor's 500 Index may post its biggest decline since 2001 when the U.S. market resumes trading today after the Martin Luther King Day holiday, futures showed.

UBS AG and Bank of China Ltd. led financial companies lower after banks lost more than $100 billion on credit investments. Bang & Olufsen A/S and Wal-Mart de Mexico SAB were among consumer stocks that tumbled amid signs the world's biggest economy is shrinking. Even with MSCI World valuations at the cheapest since at least 1995, some of the biggest investors say stocks may fall further.

``I'm struggling to find a catalyst that will turn this market around,'' Bob Parker, who helps oversee more than $600 billion at Credit Suisse Asset Management in London, said in a Bloomberg Television interview. ``What we need is evidence that the write-offs in the financial-services sector are behind us, and we are probably only going to get that in the second quarter. Clearly the market situation is fairly ugly at the moment.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aieeL_MC5X4s&refer=home

[RamboLiberal]

1. Tuesday: Asian stocks open lower, continuing worldwide plunge

Asian stock markets opened sharply lower Tuesday, continuing a plunge that spread worldwide on Monday on worries that U.S. economic woes could turn global boom times to bust.

Japan's Nikkei 225-share index was down about 4.4% at 6 p.m. Pacific time, two hours into the trading session in Tokyo. That followed a 3.9% slide Monday.

Stocks also were down nearly 5% in Australia, where they had tumbled 2.9% on Monday.

The heavy losses set a worrisome tone for trading Tuesday on Wall Street. Domestic markets, which had plunged last week on recession fears, were closed Monday in observance of Martin Luther King Day.

http://www.latimes.com/business/la-fi-markets22jan22,0,4231134.story?coll=la-home-center

[papau]

2. Hong Kong is down 7%

[lakeguy]

3. down 8% now...

when do they pull the plug?

[earthside]

4. Holy Hannah!

Take a look at this:

U.S. stock futures point to major decline on reopen - MarketWatch

If futures contracts traded on a day when U.S. stocks weren't even due to open are anything near accurate, then markets will be in for a major decline on Tuesday, with concerns about bond insurers and the health of financial institutions dragging markets lower.

The Dow Jones Industrial Average futures contract was recently off 520 points at 11,586, the Nasdaq futures were at 1773.25, down 76.25, and the Standard & Poor's 500 futures recently were at 1265, down 60.3.

Futures contract don't move in complete lockstep to the underlying indexes, but by comparison, the Dow industrials fell 382 points on Sept. 20, 2001, just days after the terrorist attack on the Twin Towers, and by 387 points on Aug. 9, 2007, shortly after the recent credit crunch first emerged.

[Wednesdays]

5. India down 9.75%

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2739373

On edit: The NIFTY index is down 12.10%.

[Yael]

6. What are you all worried about?? Bush is going to send us each $800 and that should fix it!

:sarcasm:

[Dr.Phool]

9. Good. I'll buy a tank of gas, and some lunch meat, and I'll be set for the week.

[NewYorkerfromMass]

7. Not to add to the panic here but

the fact that the banks are involved in this as deeply as they are is highly reminiscent of the bank woes of the Great Depression.
There are in fact many unique characteristics to this current economic crisis that recall 1929.

[The Doctor.]

11. They inflate, then they drink. They used to be clumsy... they aren't anymore. eom

[Betty]

8. when the asshole leaves office

I am pretty sure the dow, S&P 500, and all other major indexes will be lower than when he stole the presidency. I imagine it will be a long time before the markets really recover for good.

[The Doctor.]

10. There are parasites that CONTROL these very markets... they know how to engorge it...

and then suck it dry.

They've been doing it for a long time... which is why I suspect they'll be putting another Clinton in office. After she 'secures' and 'augments' the economy, who will be annointed next?

[UpInArms]

13. jeb

n/t

[NoGodsNoMasters]

12. Scary shit.

=(

[cutlassmama]

14. Very much so

[12string]

15. It appears to me that

Reagonomics has finally run its course.

[salin]

16. So how is Ws "ownership society" looking...

[radfringe]

17. pretty good actually - the haves and have mores

now own even more of society..

Please panic in an orderly fashion...

[salin]

18. Indeed - it was always a catch phrase for us - and only a real plan

for the already wealthy.