AIG Rescue Fails To Revive Asian Markets

[tekisui]

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=307526da-c5f9-4959-8687-2ed7f9f5c1aa

Asian stock markets failed to gain much traction Wednesday from a U.S. government rescue of insurer American International Group Inc., with many expecting more bad news from the beleaguered U.S. financial sector.

A number of markets erased gains to turn lower while others came off their highs, leaving intact the hefty declines they have posted for the week so far.

Japan's Nikkei 225 ended only 1.2% higher while Hong Kong's Hang Seng Index was 3.1% lower by the early afternoon.

While AIG rescue eased concerns about the systemic risk created by the insurer's failure given its global reach, worries remained about the health of the U.S. financial sector as a whole as well as the broader economy, said analysts.

Many were casting around for the next potential trouble spot, with CNBC reporting on its Web site that Morgan Stanley officials were considering whether the firm should stay independent or merge with a bank amid turbulence in its stock. CNBC added Morgan officials weren't in merger talks as of late Tuesday.

"It's not like a game of soccer and when the final whistle goes, it's all over," said Forsyth Barr institutional broker David Price, describing the downbeat view in markets despite the AIG rescue.

"There is still lots of overtime left in this game," he added.

[ladjf]

1. The rest of the World has got to be very angry with the U.S.

financial malfeasance. How long before they take steps to leave us out?

[halobeam]

2. hmmm not long....

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3494220

[ladjf]

3. Economic isolation would be step one. If the U.S. persisted in

it's bellicose actions, military intervention could follow. If "end timers" like Palin were to be in charge here, they would be perfectly willing to let loose our arsenal of nukes in retaliation and to create Armageddon.

I know this is crazy sounding stuff. But, the fact is, we are already being led by psychopaths and socio-paths.