Alan GreenSpan expects more market turmoil to come, reports Alan Zibel of the Wall Street Journal Online.
UPDATED: The former chairman of the Federal Reserve is warning that the Standard & Poor’s downgrade of U.S. debt means more trouble ahead for financial markets.
“Considering the momentum at which the market went down over the last week, it is very unlikely, if history is any guide, that this isn’t going to take a while to bottom out,” former Fed Chairman Alan Greenspan said Sunday on NBC’s “Meet the Press.
“The initial reaction, in my judgment is going to be negative,” he said.
Mr. Greenspan noted that Israel’s stock market—one of the few open—“tanked” on Sunday, but he said it’s hard to determine whether the cause was the U.S. downgrade or widespread protests against high consumer prices in Israel. ... Chances for another recession in the U.S. hinge on the ability of European governments to resolve their debt problems, Mr. Greenspan said.
Greenspan sees Europe as critical to US exports, and the resolution of Italy's debt crisis is the harbinger of things to come there,as it is too big to bail out.
Meanwhile, just before midnight EST, Reuters reports Asian markets are significantly down, between 1.3% to 4.4% link to Reuturs Asian Markets Indices.
The Japanese Nikkei Stock Average 225 is down 1.31%, while the Thompson Reuters Equity HK Index is down 4.41 percent. Follow the this , for the lastest quites, which are delayed 15 minutes or more.
link to Reuturs Asian Markets Indices
Symb Index Mkt Report Time Last Chg Chg %
.TRXFLDJPP Thomson Reuters Equity Japan Index 12:22am EDT 68.31 -1.68 -2.40%
.TRXFLDHKP Thomson Reuters Equity HK Index 7 Aug 2011 229.79 -10.95 -4.55%
.TRXFLDCNP Thomson Reuters Equity China Index 7 Aug 2011 275.75 -12.19 -4.23%
.TRXFLDINP Thomson Reuters Equity India Index 12:22am EDT 563.41 -15.15 -2.62%
.N225 Nikkei Stock Average 225 View 12:02am EDT 9,103.51 -196.37 -2.11%
.HSI Hang Seng Index View 12:05am EDT 20,100.20 -845.94 -4.04%
.AORD ASX All Ordinaries Index 12:22am EDT 4,080.00 -89.70 -2.15%
.KS11 KOSPI Index 12:22am EDT 1,829.20 -114.55 -5.89%
.FTSTI Straits Times Index 12:07am EDT 2,865.58 -129.20 -4.31%
.SETI SET Composite Index 12:22am EDT 1,074.76 -18.62 -1.70%
.JKSE Jakarta Composite 12:12am EDT 3,748.79 -172.85 -4.41%
.PSI PSE Composite Index 12:22am EDT 4,331.24 -106.31 -2.40%
.KSE Karachi SE 100 Index 12:22am EDT 11,101.12 -273.97 -2.41%
.SSEC Shanghai Composite Index 7 Aug 2011 2,529.88 -96.54 -3.68%
.FTFBMKLCI FTSE Bursa Malaysia KLCI 12:07am EDT 1,477.31 -47.12 -3.09%
Sun Aug 07, 2011 at 9:40 PM PT: http://www.reuters.com/...
(Reuters) - Shares tumbled on Monday despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded the U.S. credit rating, but the euro jumped on hopes the ECB will act to stop Europe's debt crisis from engulfing Italy and Spain.
Major Asian equity markets fell by 2-4 percent, with South Korea slumping more than 7 percent at one point.
S&P 500 futures shed 2.6 percent, indicating no respite for Wall Street, and financial bookmakers predicted the main European markets would open down 1-2 percent. .N .EU
Fears that the world's largest economy may be sliding back into recession, worries about a downgrade of the U.S. AAA rating and Europe's woes combined to pummel financial markets last week in one of the worst routs since the dark days following the collapse of Lehman Brothers in 2008.
Investors sought shelter in assets traditionally viewed as safe havens in times of financial turmoil, driving the Swiss franc to a record against the dollar and pushing gold to a new high above $1,701 an ounce.
Sun Aug 07, 2011 at 9:53 PM PT: http://seattletimes.nwsource.com/... a format I've never seen before. But, it a long worthwhile article if you want to get good overview of what appears to be emerging efforts to forestall a panic. G7 representative anounced they will coordinate efforts to calm markets after an unusual Sunday night conference call.
"The Obama administration sought to reassure global investors and push back against Standard & Poor's first-ever downgrade of the ..."
Top economic officials from around the world scrambled Sunday to contain the fallout from an unprecedented downgrade of the U.S. credit rating and a serious worsening of Europe's economy.
And as officials huddled to discuss strategy, traders and investors braced for more market fallout Monday. Shares across the Middle East fell sharply Sunday, with stocks in Israel falling 7 percent, the steepest daily fall in more than a decade.
Stock markets in the Asia-Pacific region fell early Monday, and the price of gold — considered a haven at times of uncertainty — jumped to yet another record, more than $1,688, underscoring the lingering nervousness.
Futures on the Standard & Poor's 500 were 1.8 percent lower, and the price of oil sagged $3 a barrel.
Sun Aug 07, 2011 at 10:26 PM PT: h/t Pluto for alerting that markets pared some of earlier loses after G7 announces intentions to take every effort to stablilize markets, Here is a Business Week article from 1 minute ago documenting Pluto's reassuring news.
U.S. Stock Futures Fall as S&P Downgrade Spurs Economic Concern
August 08, 2011, 1:07 AM EDT
http://www.businessweek.com/...
Aug. 8 (Bloomberg) -- U.S. stock futures declined, following the biggest weekly drop in the Standard & Poor’s 500 Index since 2008, amid concern that a downgrade of the nation’s credit rating by S&P may worsen an economic slowdown.
S&P 500 futures expiring in September retreated 2.5 percent to 1,168.30 at 1:43 p.m. in Tokyo. Dow Jones Industrial Average futures declined 267 points, or 2.3 percent, to 11,135. Stock- futures earlier pared losses after the Group of Seven nations said they will take every action necessary to stabilize financial markets and the European Central Bank indicated separately it will buy Italian and Spanish bonds.
The U.S. credit rating downgrade threatens to extend a rout in U.S. stocks that wiped out $1.94 trillion in market value and erased the S&P 500’s gain for the year.
“We’re in the midst of a sharp correction,” Matthew Kaufler, a portfolio manager at Federated Clover Investment Advisors in Rochester, New York, which oversees $3 billion, said in a telephone interview. The downgrade is “a monumental event. It creates greater uncertainty near-term. It was already a very fragile market. Over the near-term, there will be pressures as institutions and individual investors try to recalibrate what this means. It has a negative psychological effect. I’m not surprised.”
Is it not poignant, the Republicans efforts to force the nation to save $2 trillion over 10 years, caused US investors to lose $1.94 Trillion market valuein eight hours?
We need to make sure voters know this hangs on the GOP.
Sun Aug 07, 2011 at 11:03 PM PT: Here's a WSJ article from 7 hours ago urging investors not to panic, and giving a historical few, about those that paniced in the past suffer larger losses.
http://online.wsj.com/...