So, you may recall my post from Friday about Bush wanting to shove through an economic stimulus package (here: http://thepete.com/…is-legacy). My theory was that it was just Bush trying to save face in the eyes of history and wouldn't have much effect on things, but boy was I wrong--and not in a good way.
It seems like investors in the world markets felt like Bush's plan was a joke, as well, and decided to take some serious profits. "Taking profits" is stock-market-talk for cashing out your stocks--aka taking your money and running. This causes the market to drop and the BBC News article screencapped above (found here: http://news.bbc.co.uk/…199552.stm) reports that this is representing the biggest drop, in some markets, since 911.
Britain's FTSE-100 (sort of like the DOW) dropped over $160 billion. That's an insane amount of money.
Meanwhile, markets in Europe and Asia have also lost massive money.
I think the theory is that the world has been watching the dollar drop lower and lower in value since mid-last year when it first became worth less than the Canadian dollar (I've been following it's drop for even longer). When Bush finally showed the world that his plan to save the US economy wasn't much of a plan at all, the rest of the world decided to get out while they still could.
This has quite literally been a long time coming and isn't entirely linked to the whole sub-prime mortgage thing.
Luckily, US markets are closed today thanks to us honoring MLKJr.
Unluckily, they'll be open tomorrow, when we can expect a bloodbath in the morning.
This has the potential to be huge--absolutely huge. If it isn't it could easily be a precursor to something that is huge.
I always like to suggest solutions when I post about stuff like this, but I can't think of any right now.
Well, aside from the suggestion that we should all horde gold and invest in the Euro...*fast*.
Mobile post sent by thepete using Utterz.
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