The problems of the housing bubble are catching up to us. The real estate crash has started, bringing big losses to the big financial firms — over $100 BILLION in write-downs so far!
And in the past few weeks the stock market has been catching on that things are not so great anymore. But today – with markets closed in the U.S. in honor of Martin Luther King Day – stocks have been plunging around the world. Markets in Asia down as much as 7%, even more. Europe as well. Canada down.
Dow futures are down dramatically – 540 points, more than 4% – which could mean a very bad day tomorrow – or not.
Stocks Plunge Worldwide on Fears of a U.S. Recession – New York Times,
“There is indeed some panic,” said Thomas Mayer, the chief European economist at Deutsche Bank in London. “What we’re seeing, in Europe and Asia, is that the markets are pricing in a recession.”
The sell-off was evenly distributed from West to East, with indexes plunging in London, Paris, Frankfurt, Tokyo, Hong Kong, Seoul and Bombay. The Frankfurt Stock Exchange’s Dax index plummeted 7.2 percent, its steepest one-day decline since Sept. 11, 2001. The 7.4 percent drop in Bombay’s Sensex index was the second-worst single-day tumble in its history.
Remember what I said about money market funds. Make sure that your money is in FEDERALLY INSURED ACCOUNTS.