Asian stock markets fall after US credit downgrade

[nadinbrzezinski]

BANGKOK (AP) -- Asian stocks fell Monday after the historic downgrade of the U.S. credit rating but losses were contained amid a promise by Group of Seven industrial nations to take all necessary measures to support financial stability.

Oil prices extended recent sharp losses, trading below $85 a barrel on expectations that slowing global economic growth will crimp demand for crude.

Japan's Nikkei 225 stock average was down 1.3 percent at 9,178.30 and Seoul's Kospi dropped 1.6 percent to 1,913.58.

Hong Kong's Hang Seng tumbled 2.6 percent to 20,409.01 while Australia's S&P/ASX 200 pared its initial sell-off to be down 1 percent at 4,062.70.

http://finance.yahoo.com/news/Asian-stock-markets-sink-apf-960906676.html?x=0&sec=topStories&pos=main&asset=&ccode=

This feels worst than 2008... at least to me.

[elleng]

1. Could be; dunno.

Japan says market trust in dollar, treasuries unshaken.

http://www.nytimes.com/reuters/2011/08/07/world/asia/news-us-japan-economy-noda.html?ref=reuters

[dkf]

2. Not yet.

But just wait if we have the first failure when everyone tries to figure out who is on the line for what.

Hoarding cash doesn't seem so stupid anymore.

[girl gone mad]

3. I think this has more to do with the crisis in Europe.

S&P certainly didn't help matters with their bullshit downgrade, but this correction has been a long time coming. The risk-on trade went on well beyond what the fundamentals could support. With algos dominating trading, huge downside moves are to be expected when sentiment shifts.

Yes, we should have dealt with the private debt in 2008 rather than trying to paper it over. We never got a real recovery and now we're staring down the double barrel of solvency crises in Europe and a confidence crisis here.

[nadinbrzezinski]

4. I think we wil find out just how systemic this is

to the US and how much it is Europe... this is why it feels worst than 2008 to me.

[elleng]

6. Don't know if 'more' or not,

but your analysis is right-on.

As to S+P, don't think down-grade entirely b.s., as based to fair extent on b.s. repugs put us through and promise to continue. Timing and problem surely bad, and problem surely fault of many of our failures.

[Electric Monk]

5. Worst and worse are different, although similar, words with different meanings

You seem to use them interchangeably. They aren't the same.

http://dictionary.reference.com/browse/worse
http://dictionary.reference.com/browse/worst

/pet peave

[CoffeeCat]

7. Oh I know exactly how you feel...

My pet peeve is when people call out people for grammatical errors
and spelling mistakes--and then proceed to make similar errors themselves.

Pet peeve.

[Horse with no Name]

8. ....

[CoffeeCat]

10. ...

[Horse with no Name]

11. ....

[CoffeeCat]

12. ...

[Horse with no Name]

13. Okay...you win...that one gets me everytime

:thumbsup:

[zappaman]

9. it's falling!