New York – Stocks in Europe and Asia fell, U.S. futures slumped and Treasuries rose as Warren Buffett said the economy is in a “shambles” and American International Group Inc. announced a $61.7 billion loss.
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HSBC Holdings Plc tumbled 19 percent in London, the biggest drop since at least 1992, after saying it plans to raise 12.5 billion pounds ($17.7 billion) in a rights offer, increasing concern that financial firms need more capital. General Electric Co. and Caterpillar Inc. slumped more than 2 percent before a report that may show U.S. manufacturing contracted. BHP Billiton Ltd., the world’s largest mining company, lost 5.2 percent as copper and nickel decreased and oil slid more than 5 percent.
“Things are getting worse,” said Alex Crooke, portfolio manager at Henderson Global Investors in London, which has about $125 billion. “The economy is still deteriorating and bad debts are still going to appear,” he said in a Bloomberg Television interview.
U.S. stocks opened lower and the DJ Industrial Average for the first time since 1997 traded below the 7000 mark
Boruch Hashem GAM ZE LATOVA
Good morning and welcome to Obomaland!
This has nothing to do with Obama. The world just finally realized that the emperor has no clothes. With the exception of the tech boom,the entire economy has been basically a ponzi scheme since the 1987 crash. Hence, everything is collapsing.
I am packing up and moving to a small town upstate NY where the rent is $250 a month . I wish others would join me so I would have where to send the kids to school instead of home schooling .
The administration is using bad news to undermine people’s faith in capitalism.
Do we have any more money in our pockets because we are punishing CEOs and companies? No. Remember we’re not punishing the responsible CEO’s, we’re punishing future CEO’s that haven’t done anything wrong yet.
In 6 weeks the Bamster has spent more than America has spent since its founding. The markets see this and they are rejecting it.
On the flip side, we may be closer to the bottom, and I hope those who lost will gain it back on the upside, and for those who investing was too expensive, will find it more affordable, after all you can buy GM for 7.50 today.
I can not blame Bush for what is happening now. Obama is our President he was suppose to fix our economy. Everytime h speaks the dow drops a few hundred.
I say the market will hit 2,000 before it climbs back steadily, so we’re in for a long deep slide (read: recession) for many years ahead. Time will tell. The cycle continues again.