Asian markets, euro dive on Europe election results

[OmahaBlueDog]

Source: AFP via Google

HONG KONG — Asian markets tumbled and the euro hit a more than three-month low Monday after voters in France and Greece booted out ruling parties in a backlash against austerity measures aimed at battling the eurozone crisis.

Adding to the bearish atmosphere was weak jobs data out of the United States last week, which fuelled concerns about recovery in the world's biggest economy and sent Wall Street sliding.

Tokyo tumbled 2.62 percent by the break, Hong Kong slumped 2.45 percent, Sydney fell 1.51 percent, Seoul shed 1.70 percent, Wellington was 0.40 percent lower and Shanghai lost 0.41 percent.

France's Nicolas Sarkozy was on Sunday dumped out by Socialist Francois Hollande, who had campaigned on a platform of boosting growth instead of introducing huge spending cuts to overcome the country's huge deficit.



Read more: http://www.google.com/hostednews/afp/article/ALeqM5g_HLaBzqtdcnMoFgNo_LLlc7vYPg?docId=CNG.9acfd658a4e2dc4596cde4aee8ce77d8.1d1

[elleng]

1. After 'the world' recognizes that its no time for austerity,

markets will recover. Will take time, of course, to adjust to and recover from bush-era catastrophe. We can only hope that recognition will in fact occur.

[DJ13]

2. Its the markets that want austerity

The elites who control the markets believe the only way to escape any monetary losses for the economic crisis is to push for austerity that makes the 99% pay for it.

They've been behind the stupid austerity idea from the start, and I doubt they'll willingly accept a new direction.

Its much more likely they will pull another "we'll crash the economic system if we dont get our way" like the blackmail Hank Paulson pulled in 08.

[elleng]

4. I don't think so; I think its the stupid, mindless repug attitude,

spread wild.
Paulson was a fool, and I suspect 'elites' to whom you refer knew it.
Crashing the economic system, after all, finally harms them.

[dkf]

30. They are probably short and in line to make money in a crash.

[elleng]

50. Maybe, but at least according to today's Dow, won't be no crash!

Haven't seen today's European markets yet.

[muriel_volestrangler]

51. Most European markets closed higher

http://www.bbc.co.uk/news/business/market_data/stockmarket/default.stm

France, Germany, Netherlands, Belgium. London was closed for a holiday today. Spain closed 2.72% higher (after a pretty awful 12 months).

[elleng]

53. Thanks, muriel.

Kind of suspected sanity would prevail!

[girl gone mad]

35. Exactly.

Unfortunately, they own many of the politicians. We're in for a long and bitter fight.

[AllyCat]

3. Let them crumble. The 99% don't need to follow the "markets" with bated breath.

The people need help, not the friggin' stock markets.

[elleng]

5. A lot of us among the 99% are invested in the stock markets,

one way or another, as in retirement accounts etc.

[sabrina 1]

8. That was another brilliant idea of the Global Capitalists, to get their hands on the pension funds

of working class people to gamble in the market with. That needs to change also. They want to do the same thing with SS, create 'private saving' accounts which can also be gambled away in the Wall St. Casino. Maybe now it's time to stop all of this, so that ordinary people have a say in what happens to their own money.

It was very clever, to involve everyone in the market. But who has benefited from all this gambling? How many people have completely lost their retirement funds from these crazy ideas?

Everyone living in debt, we are enslaved by debt, and now many European countries are enslaved to the IMF, as were third world countries.

I think a whole restructuring of the financial system is needed, and no more gambling with people's pension funds on Wall St.

A majority of Americans have no interest in the market. It just doesn't do anything for them, anymore than going to Las Vegas. A few may benefit, but most will not.

[dkf]

22. Pretty much all savings are invested.

Even a bank deposit.

I don't understand what you think happens.

[brentspeak]

28. Take a look at CD and savings account interest rates lately?

At around or even less than 1%, depositing money in a bank is no more of an investment than stuffing it under a mattress.

[dkf]

29. Its an investment because someone borrowed it and is using it.

Only a small part of your deposit stays at the bank. The other part is at risk.

Yeah it's FDIC insured but if a big bank goes down there's no money in that piggy.

[girl gone mad]

36. Not true.

Banks do not lend from deposits. Bank loans create deposits. Deposits are liabilities on a banks balance sheet, not assets

[jhasp]

59. Loans are assets on the bank's balance sheet...

and they are funded by deposits. Deposits are not "created" by banks; deposits are put in the bank by you and me (mine through direct deposit once per month).

[girl gone mad]

60. Nope. Loans are not funded by deposits.

I understand the neoclassical view of banking which you've described, but I'm talking about how banks actually function in the real world.

When you deposit money in a bank, you are not investing this money. The deposit is not used to fund business loans, home loans, or any other type of risk activity. Saving money in a bank is exactly the same as putting it under the mattress, plus a small interest rate given out by the bank.

Loans do, in fact, create deposits. When an individual bank makes a loan, it debits the loans receivable account on its books then creates (credits) a new liability account in the name of the borrower, no differently than if the borrower had made a cash deposit at the bank.

[quaker bill]

40. The relevant question is in what?

something of actual value or vaporware?

A very long time ago, investment involved creating businesses and building factories. Way too much of it now is derivatives of derivatives of speculative futures and the insurance policies against their eventual collapse. In short, a massive pile of paper printed in indeciferable math to disguise schemes Albert Ponzi could not have imagined in his most colorful dreams.

[JDPriestly]

24. You are so right, sabrina 1. That is also what they did prior to the crash of 1929.

Read the history (not talking to you, Sabrina 1) if you think I am wrong.

[raouldukelives]

27. It really is a beautiful construct.

With ever more brilliant minds being turned out each day to figure out new ways to fix the games in favor of the wealthiest. Today with people practically being forced into the system it only adds to the protection of "fiduciary responsibility" which enables corporations to run riot over human rights and the environment and then claim they can't be penalized because they were only looking after your best interests.
So in the end, the person really providing cover, abetting and profiting from some of the most heinous corporate crimes against nature and our fellow man in history is ourselves.

[chollybocker]

15. So take your money out, and do what you want with it.

No one's stopping you. If someone tries to stop you, kick up a fuss.

Is you is, or is you isn't?

[elleng]

16. I'm invested for my future security,

along with government pension and small soc. sec. I'm perfectly comfortable 'gambling' in this way. Who would try to 'stop' me?

[JDPriestly]

20. Yes, but our accounts are not showing gains because the 1% takes the profits.

And we do not get anything like interest on our savings. No interest for savers while the banks charge exorbitant interest and fees on loans and credit card debt and lay off employees. Something stinks. I think it's the 1%.

[elleng]

49. My accounts are showing gains,

but certainly not my small bank savings account, at 0.15%.

Don't mean to brag, but just came into some funds to invest and am using my Dad's financial advisor. Very widely diversified 'portfolio,' including mutual funds in stocks, as well as funds in bonds.

I recognize I'm fortunate, and I feel no need to apologize.

[JDPriestly]

54. Most of us do not have enough money to make advising us worthwhile to a financial adviser.

And pension funds are sometimes (maybe more than sometimes) rip-offs. A lot of financial advisers can give some really bad advice. It's very difficult in this volatile market in which giants like Goldman and Morgan compete with you in trading and investing.

[elleng]

55. Clearly have to be smart when selecting a financial adviser,

but I don't think its difficult if people study their options, including from friends, family, business people in our communities, to find good advice. Also, good advice available to those with limited funds, imo, from reputable institutions, with no charge. (In my experience, for example, TRowe Price, Charles Schwab Co.)

[JDPriestly]

63. I don't trust any of the financial institutions or advisers.

I do not have enough money to pay an adequate incentive for good advice.

Besides, you would be surprised to learn that if you don't have a lot of money and you call a broker to ask whether there is some way to get higher interest that what you are receiving from a bank, they will tell you no, not really, not if you want to protect your savings. I know this is the response you get because I have heard it.

The 1% and those with connections get a good deal. The rest of us get taken to the cleaners. In fact, right now, what is going on is that the savings of the baby boomers are being transferred to the accounts of the 1%ers. That's the reality.

[OmahaBlueDog]

11. What impacts the markets impacts the 99%

The biggest way this will manifest itself in Greece specifically, and possibly Europe generally will be with the Euro. This could possibly be the beginning of the end for the Euro, and the idea of a free-trading Eurozone. A collapse of the Euro could have serious consequences with regard to unemployment, inflation, and a whole host of other aspects of European life. Don't look for the US to play a leadership role here. It's an election year, and there is no stomach for a bailout of Europe with our own economy in a slow recovery.

[JDPriestly]

21. We won't recover until we face the challenges of our time and stop living in the past.

We need to find more efficient ways to organize transportation, and in searching for them we should focus on fuel efficiency even more than we are. We should switch from long-distance freight hauling by train to hauling by faster rail.

We need to reward people who switch to gas-efficient cars and trucks. And people who switch to really low mileage vehicles or who insulate their homes and switch to solar for their houses should be given outright bonuses of some sort, not just tax relief. That would encourage low-income people and seniors to change their energy consumption.

If we could stop wasting so much on energy, we could use our savings for paying debt.

[dkf]

23. Sadly they will figure this out the hard way.

[NickB79]

45. And if the crashing stock market leads to another Great Depression?

We've seen this show before, and it's not pretty.

[timlot]

6. US stock will rise.

[OmahaBlueDog]

7. I'm not sure stocks will rise, but the Dollar will soar

Gold probably also rises

[magic59]

12. Gold and silver prices will go negative also

Strong dollar will depress silver, gold.

[OmahaBlueDog]

13. I was thinking "flight to safety"

However, you may be right. Timlot might also be right about the US stocks. There could be a move into "blue chips" by investors spooked over what is going on in Europe.

[magic59]

14. US stocks will follow overseas markets

They are all one big happy family or unhappy by tomorrow.

[elleng]

17. Over time, as is usually the case.

[magic59]

9. Could be the beginning of a long overdue revolution

When one party, this time the conservatives, goes too far, gets too greedy for change then a fundamental correction happens and usually over corrects in the other direction. History repeating itself. War has been declared against the banksters and they will use the full power of the stock market and monetary fund to fight back.

[Smilo]

10. It so annoys me that when the people do

something right the stock markets around the world take umbridge and say they are wrong.

[elleng]

19. Markets react, up and down, to whatever happens;

they prefer stability, but that's not life, is it?

[Tunkamerica]

31. umbrage? offense taken from some slight, often imagined, insult?

[Odin2005]

18. The PTB hate the popular will.

[dkf]

26. Sometimes the populace doesn't understand that there are consequences to getting ones way.

Of course no one wants their benefits cut, but it may be a better choice than the alternative. The French took the chance, now we will all see where it goes. Obama might be the ultimate casualty if this rips the EU apart.

[sendero]

34. Two countries that told the banksters to pack sand

.... Iceland and Sweden, recovered nicely in a short time.

The socialized risk privatized profits model benefits nobody but the banksters, that is a fact.

[hack89]

52. Iceland borrowed billions from the IMF

Iceland was a domestic banking failure. They told the Icelandic banks to pack sand. They went hat in hand to beg money from the global financial markets. They also applied for membership in the EU to gain more credibility with the international financial organizations.

[sendero]

56. They did...

.. and they won.

Here's a clue for you. If you are a bank, you are supposed to qualify the borrower. If the borrower tells you to pack sand, blame yourself.

[hack89]

62. So implementing IMF austerity measures and raising taxes is winning?

or is it willingly taking the harsh medicine that Greece doesn't want to take?

[girl gone mad]

37. Right.. "There Is No Alternative"

but for the people to accept cuts and mass poverty so that the reckless financial sector can receive a permanent bailout.

No one is buying it any more.

[LeftishBrit]

41. It's not a better choice if you are poor, elderly, sick or disabled!

'Sometimes the populace doesn't understand that there are consequences to getting ones way.'

Wow. Hope you didn't mean that the way it sounded; but what you sounded like was a 19th century aristocrat opposing the rise of democracy, because most people don't really know what's good for them!

[Odin2005]

58. RW Neo-Liberal talking points.

it is typical for you Neo-Liberals to call your propaganda the One True Economics and that anyone who questions it is ignorant and/or illogical.

[boomerbust]

32. CNBC should be fun to watch this morning.

BWAAAA!!!!

[OKNancy]

33. I hope the US market just does a temporary slump

As others have said, a lot of retirement/ savings are in the US market.
Mine is a private IRA and mutual funds. My husband and I never have received employer based pensions or 401Ks.
We saved and did it on our own.

So, please stop with the cackling and thinking it's real cool if the market goes down.
It hurts everyone.

Me, I'm not going to panic. I'm sticking it out.

[girl gone mad]

38. It's cool for the people who have bought puts with their IRA funds.

Don't think of it as rooting against you, think of it as rooting for them.

[leveymg]

39. OMG! The world is ending! The 1% may have to pay more taxes, and the banks will have to lend to

middle-class people, again. Oh, boo hoo! Sound of wailing and gnashing of teeth!

Ferrari and yacht builders stock tumble. The end is nigh!

[OKNancy]

42. Fortunately the Markets seem to be stablizing

I guess they figure it's not all that bad. Futures are down slightly, but nothing really drastic.

[grahamhgreen]

43. ZOMG! Guess they won't get to steal everyone's pensions after all. NT

[harun]

61. Maybe not in France. Not so optimistic about the U.S.A. pensions.

Our pensions become worth less everyday they keep printing more fake money.

[SOS]

44. At midday

Asian stocks down about 2%
European markets up
Dow flat
Euro down 0.3%

Not exactly Armageddon

[Fearless]

46. Big Bu$iness realizes that they're fucked.

[LeftishBrit]

47. The markets tend to fall temporarily at any significant political change

I don't think this means long-term doom.

[OKNancy]

48. Dow, S&P, and Nasdaq all up

nothing gangbusters, but good news for us small investors

[jwirr]

57. Back in the Great Depression the market recognized that there was a very strong socialist

movement in the USA and they bowed to FDR as their savior. I am kind of laughing after the wins in France, Greece and Italy also moved left in their election. We here on DU complain about having the "vote for the lessor of two evils". I think the rethugs had better look at which way the wind blows and prepare to throw themselves to accept the "lessor of two evils". Or at least that is what they would say about socialism/Obama. I have been flirting with socialism since the 60s so I consider the two a win-win.