I was going through Bloomberg news world wide, my daily routine these days since Americal market has hit the turmoil. I found the picture above, illustrating what the biggest on the wall street are going through today. Latest News being Wachovia’s demise at the hands of Wells Fargo.
Its a sorry state, mostly because it is affecting the Indian market as much as it id doing damages to others. I have read enough about the subprime crisis and how it jolted the largest economy in the world (hard to believe though). But I’m no economist and I don’t know if it will be set alright in next six months. The stock market has reduced to half of what it was 9 months back. Most reputed and big corporations are sinking, notably ICICI, Reliance Infra, Jaypee group… no idea what else is going to scare us. If anybody has an answer, please let me know
The market is going to go further dow. I’m just praying we all stay afloat.
I asked the same question on CE as well. Here is an extract of what I wrote.
Bear Sterns collapsed
Lehman Brothers files for Bankruptcy
Merrill Lynch sold
Bank of China reduces interest rates
Citi, HSBC, Barclays bank all posting losses in billions
World’s largest insurance company begging for bridge loan on $20billlon
Stock markets all over the world plummeting to record lows
Reserve Bank of India fighting to curb inflation
Companies laying off employees all over the place
Fluctuating oil prices
Whats happening to the world? Experts say the doomsday is very near. Are we headed for the greatest recession?
I’m feeling very sad to accept that world indeed might be heading for a recession. Although there are no confirmations yet. But the signs have started appearing. Some one like AIG asking for a bridge loan of $20billion or more is enough reason for me to believe that the bear has struck. Every speculator is obviously speaking his/her own language. But none as of now is ready to accept that the economy is indeed shaken, not just in the US but across the world. But the question here is, how long are we going to be dependent on the economy and growth of just one nation? No longer I think. This is the time for China and India to strike.
If you ask me are we heading for a recession? I would say no. At least not India.
Update: This picture really excited me. So I had to include it Take a snapshot preview. 🙂