Cyberwanderer’s Blog

March 17, 2008

Stock dropped after U.S. rate cut

Filed under: Canada,Politics — cyberwanderer @ 12:03 am
Tags: , , , , ,

The stock market is in a very delicate situation right now. Hope people don’t panic as stock market opens here on Monday morning. As of now there are huge drops in the Asian stock market and U.S. dollar continue to fall. This comes after JP Morgan bought Bear Stearns on the cheap at $2.00. Bear Stearns was at one time trading at about $150.00 last April and recently fell to about $30.00. So it is a shock that it’s now being sold for $2.00. That means it is pretty much gone. I guess the bail out is a necessary move because allowing it to collapse would create panic among investors. Scene like depression era comes to mind when people were rushing to the banks to withdraw money which only worsens the situation. I doubt that would happen but with online trading now, people would probably be transferring their money out of stocks and into the safer bonds. Whether the Bear Stearns buy out would be enough to ease concern remains to be seen.

Asian stock as of this time:

Hang Seng fell by 932.52 points (~ 4% dropped)

Nikkei 225 fell by 439.20 (3.59% dropped)

Related article:

Bloomberg – Asia Stocks, U.S. Futures, Dollar decline after Fed Cuts rate

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