Asian markets, euro dive on Europe election results
Source: AFP via Google
HONG KONG Asian markets tumbled and the euro hit a more than three-month low Monday after voters in France and Greece booted out ruling parties in a backlash against austerity measures aimed at battling the eurozone crisis.
Adding to the bearish atmosphere was weak jobs data out of the United States last week, which fuelled concerns about recovery in the world's biggest economy and sent Wall Street sliding.
Tokyo tumbled 2.62 percent by the break, Hong Kong slumped 2.45 percent, Sydney fell 1.51 percent, Seoul shed 1.70 percent, Wellington was 0.40 percent lower and Shanghai lost 0.41 percent.
France's Nicolas Sarkozy was on Sunday dumped out by Socialist Francois Hollande, who had campaigned on a platform of boosting growth instead of introducing huge spending cuts to overcome the country's huge deficit.
Read more: http://www.google.com/hostednews/afp/article/ALeqM5g_HLaBzqtdcnMoFgNo_LLlc7vYPg?docId=CNG.9acfd658a4e2dc4596cde4aee8ce77d8.1d1
elleng
(131,370 posts)markets will recover. Will take time, of course, to adjust to and recover from bush-era catastrophe. We can only hope that recognition will in fact occur.
DJ13
(23,671 posts)The elites who control the markets believe the only way to escape any monetary losses for the economic crisis is to push for austerity that makes the 99% pay for it.
They've been behind the stupid austerity idea from the start, and I doubt they'll willingly accept a new direction.
Its much more likely they will pull another "we'll crash the economic system if we dont get our way" like the blackmail Hank Paulson pulled in 08.
elleng
(131,370 posts)spread wild.
Paulson was a fool, and I suspect 'elites' to whom you refer knew it.
Crashing the economic system, after all, finally harms them.
dkf
(37,305 posts)elleng
(131,370 posts)Haven't seen today's European markets yet.
muriel_volestrangler
(101,411 posts)France, Germany, Netherlands, Belgium. London was closed for a holiday today. Spain closed 2.72% higher (after a pretty awful 12 months).
elleng
(131,370 posts)Kind of suspected sanity would prevail!
girl gone mad
(20,634 posts)Unfortunately, they own many of the politicians. We're in for a long and bitter fight.
AllyCat
(16,260 posts)The people need help, not the friggin' stock markets.
elleng
(131,370 posts)one way or another, as in retirement accounts etc.
sabrina 1
(62,325 posts)of working class people to gamble in the market with. That needs to change also. They want to do the same thing with SS, create 'private saving' accounts which can also be gambled away in the Wall St. Casino. Maybe now it's time to stop all of this, so that ordinary people have a say in what happens to their own money.
It was very clever, to involve everyone in the market. But who has benefited from all this gambling? How many people have completely lost their retirement funds from these crazy ideas?
Everyone living in debt, we are enslaved by debt, and now many European countries are enslaved to the IMF, as were third world countries.
I think a whole restructuring of the financial system is needed, and no more gambling with people's pension funds on Wall St.
A majority of Americans have no interest in the market. It just doesn't do anything for them, anymore than going to Las Vegas. A few may benefit, but most will not.
dkf
(37,305 posts)Even a bank deposit.
I don't understand what you think happens.
brentspeak
(18,290 posts)At around or even less than 1%, depositing money in a bank is no more of an investment than stuffing it under a mattress.
dkf
(37,305 posts)Only a small part of your deposit stays at the bank. The other part is at risk.
Yeah it's FDIC insured but if a big bank goes down there's no money in that piggy.
girl gone mad
(20,634 posts)Banks do not lend from deposits. Bank loans create deposits. Deposits are liabilities on a banks balance sheet, not assets
jhasp
(101 posts)and they are funded by deposits. Deposits are not "created" by banks; deposits are put in the bank by you and me (mine through direct deposit once per month).
girl gone mad
(20,634 posts)I understand the neoclassical view of banking which you've described, but I'm talking about how banks actually function in the real world.
When you deposit money in a bank, you are not investing this money. The deposit is not used to fund business loans, home loans, or any other type of risk activity. Saving money in a bank is exactly the same as putting it under the mattress, plus a small interest rate given out by the bank.
Loans do, in fact, create deposits. When an individual bank makes a loan, it debits the loans receivable account on its books then creates (credits) a new liability account in the name of the borrower, no differently than if the borrower had made a cash deposit at the bank.
quaker bill
(8,225 posts)something of actual value or vaporware?
A very long time ago, investment involved creating businesses and building factories. Way too much of it now is derivatives of derivatives of speculative futures and the insurance policies against their eventual collapse. In short, a massive pile of paper printed in indeciferable math to disguise schemes Albert Ponzi could not have imagined in his most colorful dreams.
JDPriestly
(57,936 posts)Read the history (not talking to you, Sabrina 1) if you think I am wrong.
raouldukelives
(5,178 posts)With ever more brilliant minds being turned out each day to figure out new ways to fix the games in favor of the wealthiest. Today with people practically being forced into the system it only adds to the protection of "fiduciary responsibility" which enables corporations to run riot over human rights and the environment and then claim they can't be penalized because they were only looking after your best interests.
So in the end, the person really providing cover, abetting and profiting from some of the most heinous corporate crimes against nature and our fellow man in history is ourselves.
chollybocker
(3,687 posts)No one's stopping you. If someone tries to stop you, kick up a fuss.
Is you is, or is you isn't?
elleng
(131,370 posts)along with government pension and small soc. sec. I'm perfectly comfortable 'gambling' in this way. Who would try to 'stop' me?
Response to elleng (Reply #16)
Post removed
JDPriestly
(57,936 posts)And we do not get anything like interest on our savings. No interest for savers while the banks charge exorbitant interest and fees on loans and credit card debt and lay off employees. Something stinks. I think it's the 1%.
elleng
(131,370 posts)but certainly not my small bank savings account, at 0.15%.
Don't mean to brag, but just came into some funds to invest and am using my Dad's financial advisor. Very widely diversified 'portfolio,' including mutual funds in stocks, as well as funds in bonds.
I recognize I'm fortunate, and I feel no need to apologize.
JDPriestly
(57,936 posts)And pension funds are sometimes (maybe more than sometimes) rip-offs. A lot of financial advisers can give some really bad advice. It's very difficult in this volatile market in which giants like Goldman and Morgan compete with you in trading and investing.
elleng
(131,370 posts)but I don't think its difficult if people study their options, including from friends, family, business people in our communities, to find good advice. Also, good advice available to those with limited funds, imo, from reputable institutions, with no charge. (In my experience, for example, TRowe Price, Charles Schwab Co.)
JDPriestly
(57,936 posts)I do not have enough money to pay an adequate incentive for good advice.
Besides, you would be surprised to learn that if you don't have a lot of money and you call a broker to ask whether there is some way to get higher interest that what you are receiving from a bank, they will tell you no, not really, not if you want to protect your savings. I know this is the response you get because I have heard it.
The 1% and those with connections get a good deal. The rest of us get taken to the cleaners. In fact, right now, what is going on is that the savings of the baby boomers are being transferred to the accounts of the 1%ers. That's the reality.
OmahaBlueDog
(10,000 posts)The biggest way this will manifest itself in Greece specifically, and possibly Europe generally will be with the Euro. This could possibly be the beginning of the end for the Euro, and the idea of a free-trading Eurozone. A collapse of the Euro could have serious consequences with regard to unemployment, inflation, and a whole host of other aspects of European life. Don't look for the US to play a leadership role here. It's an election year, and there is no stomach for a bailout of Europe with our own economy in a slow recovery.
JDPriestly
(57,936 posts)We need to find more efficient ways to organize transportation, and in searching for them we should focus on fuel efficiency even more than we are. We should switch from long-distance freight hauling by train to hauling by faster rail.
We need to reward people who switch to gas-efficient cars and trucks. And people who switch to really low mileage vehicles or who insulate their homes and switch to solar for their houses should be given outright bonuses of some sort, not just tax relief. That would encourage low-income people and seniors to change their energy consumption.
If we could stop wasting so much on energy, we could use our savings for paying debt.
dkf
(37,305 posts)NickB79
(19,297 posts)We've seen this show before, and it's not pretty.
timlot
(456 posts)OmahaBlueDog
(10,000 posts)Gold probably also rises
magic59
(429 posts)Strong dollar will depress silver, gold.
OmahaBlueDog
(10,000 posts)However, you may be right. Timlot might also be right about the US stocks. There could be a move into "blue chips" by investors spooked over what is going on in Europe.
magic59
(429 posts)They are all one big happy family or unhappy by tomorrow.
elleng
(131,370 posts)magic59
(429 posts)When one party, this time the conservatives, goes too far, gets too greedy for change then a fundamental correction happens and usually over corrects in the other direction. History repeating itself. War has been declared against the banksters and they will use the full power of the stock market and monetary fund to fight back.
Smilo
(1,944 posts)something right the stock markets around the world take umbridge and say they are wrong.
elleng
(131,370 posts)they prefer stability, but that's not life, is it?
Tunkamerica
(4,444 posts)Odin2005
(53,521 posts)dkf
(37,305 posts)Of course no one wants their benefits cut, but it may be a better choice than the alternative. The French took the chance, now we will all see where it goes. Obama might be the ultimate casualty if this rips the EU apart.
sendero
(28,552 posts).... Iceland and Sweden, recovered nicely in a short time.
The socialized risk privatized profits model benefits nobody but the banksters, that is a fact.
hack89
(39,171 posts)Iceland was a domestic banking failure. They told the Icelandic banks to pack sand. They went hat in hand to beg money from the global financial markets. They also applied for membership in the EU to gain more credibility with the international financial organizations.
sendero
(28,552 posts).. and they won.
Here's a clue for you. If you are a bank, you are supposed to qualify the borrower. If the borrower tells you to pack sand, blame yourself.
hack89
(39,171 posts)or is it willingly taking the harsh medicine that Greece doesn't want to take?
girl gone mad
(20,634 posts)but for the people to accept cuts and mass poverty so that the reckless financial sector can receive a permanent bailout.
No one is buying it any more.
LeftishBrit
(41,219 posts)'Sometimes the populace doesn't understand that there are consequences to getting ones way.'
Wow. Hope you didn't mean that the way it sounded; but what you sounded like was a 19th century aristocrat opposing the rise of democracy, because most people don't really know what's good for them!
Odin2005
(53,521 posts)it is typical for you Neo-Liberals to call your propaganda the One True Economics and that anyone who questions it is ignorant and/or illogical.
boomerbust
(2,181 posts)BWAAAA!!!!
OKNancy
(41,832 posts)As others have said, a lot of retirement/ savings are in the US market.
Mine is a private IRA and mutual funds. My husband and I never have received employer based pensions or 401Ks.
We saved and did it on our own.
So, please stop with the cackling and thinking it's real cool if the market goes down.
It hurts everyone.
Me, I'm not going to panic. I'm sticking it out.
girl gone mad
(20,634 posts)Don't think of it as rooting against you, think of it as rooting for them.
leveymg
(36,418 posts)middle-class people, again. Oh, boo hoo! Sound of wailing and gnashing of teeth!
Ferrari and yacht builders stock tumble. The end is nigh!
OKNancy
(41,832 posts)I guess they figure it's not all that bad. Futures are down slightly, but nothing really drastic.
grahamhgreen
(15,741 posts)harun
(11,348 posts)Our pensions become worth less everyday they keep printing more fake money.
SOS
(7,048 posts)Asian stocks down about 2%
European markets up
Dow flat
Euro down 0.3%
Not exactly Armageddon
Fearless
(18,421 posts)LeftishBrit
(41,219 posts)I don't think this means long-term doom.
OKNancy
(41,832 posts)nothing gangbusters, but good news for us small investors
jwirr
(39,215 posts)movement in the USA and they bowed to FDR as their savior. I am kind of laughing after the wins in France, Greece and Italy also moved left in their election. We here on DU complain about having the "vote for the lessor of two evils". I think the rethugs had better look at which way the wind blows and prepare to throw themselves to accept the "lessor of two evils". Or at least that is what they would say about socialism/Obama. I have been flirting with socialism since the 60s so I consider the two a win-win.