Markets: world waits with baited breath

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News 24, South Africa

Interesting article, but it won't copy--you'll have to go there.

-- Rachel Gibson (rgibson@hotmail.com), September 16, 2001

Answers

BBC

The direction of the global economy hangs in the balance as all eyes turn to the reopening of the US stock markets for evidence of a "patriotic" rally or a US-led slide into recession.

President Bush late on Sunday acknowledged the economy had suffered because of the terror attacks on New York and Washington, but said he had "great faith" in the resilience of the US economy.

There are many predictions, but after Tuesday's unprecedented attack on the US and the global financial system, the reality is that no one knows.

The first major stock market to reopen on Monday was in Tokyo, where the benchmark Nikkei index plunged over 5% in the first half hour of trading.

-- Rachel Gibson (rgibson@hotmail.com), September 16, 2001.


Because of the rigging of the market, I do not expect a disastrous dump tomorrow. Oh, yes, it could be 300 -500 points or more. This only means if the market were not rigged it could be 3,000-5,000 points or more. This coming week's market activity will be entirely artificial.

What do I mean by rigging? The S.E.C. rule of no company can buy its own stock during the first half hour of trading and the last half hour, and can only purchase no more than 25% of the day's volume during the rest of the session HAS BEEN WAIVED. This means, simply, that all publicly traded companies can step in and support the price of its own stock without the usual constraints.

This will work for a a few weeks, then their corporate treasuries will run out of cash, and they will have to let NATURAL market forces work. When this happens--sometime in October, I figure--we could well see days of 1,000-1,500 Dow losses. Maybe more. (Only my opinion--I have been wrong before.) But, having been through one Great Depression, with dire consequences, I do not want to go through another in my single lifetime. Therefore, I am putting my money where my mouth is, and taking a STRONG defensive position to protect myself.

-- JackW (jpayne@webtv.net), September 17, 2001.


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