A Panic Roiled Market (Classic Capulation)

-Posted by D. Worth (US) | for- M. Barbay (France)

World economic foundation thrives upon multiculturalism: #
View: 08- World GDP. There is much more in play than U.S. sub-prime. View the furthered break of the system: Here, and Here, & Here.

-Global Panic is a Classic Capitulation: VIDEO
Udayan: Investors should stay in cash, not sell in panic. The market correction seems a bit overdone on the way down. For the moment, the market should trade rangebound between 3,000 and 3,800 Nifty, and 9,000 and 9,500 Sensex on the..#

Anil Singhvi Partner at Notz Stucki, said that he has maintained for long that the decoupling theory does not work. He said it's a global village and the meltdown is because of global cues, reports CNBC-TV18. So he said, the markets will see both r...(VIDEO).

Panic roils stock markets and as Mr. Ohanian explains: Panic: common misperception that the banking crises of the 1930s helped turn a garden variety recession into the Great Depression. # (It Didn't.)
Image: Nanjing, Jiangsu province

I think that any country can agree that Elections are a very transitional time for ones country... But (so too) other circumstances have progressively sought to widen.

One Must Put things into Perspective:
Stock panic is hitting countries with 9.8 growth rate (China) including US, Real GDP rose 2.7% over the last five quarters (annual rate, on trend, once a correction is made for the decline in the growth rate of the working-age population; Productivity growth remains rapid... #

Wang (expert) Speaks about impacts, Crisis, Worry `Overdone'
October 9 (Bloomberg)
View Video (what to expect) (Source: Bloomberg)
Wang Qing, chief economist for greater China at Morgan Stanley, talks with Bloomberg's Bernard Lo in Hong Kong about the impact of coordinated interest rate cuts by central banks on global economies, the outlook for People's Bank of China monetary policy and the likelihood that the financial crisis will affect Chinese banks." (Source: Bloomberg)
Strategists seem to be more concerned with bad policies being adopted, and point to raising the marginal tax rate on the most productive workers more than 10 percentage points; and raising capital income taxes, taxing capital gains and dividends at 20%... As are proposed by Team Obama.

James Pethokoukis has this.

Mr. Ohanian also explains:
"Bad polices impact the two most important determinants of living standards: output per worker and the amount of time devoted to market work. We need look no further than Western Europe to see how bad policies have depressed a number of advanced market economies. Hours worked per adult in the average Western European country have declined nearly 30% since the 1960s, as tax rates on labor are up 15 to 20 percentage points."
"In the Consumer installment borrowing, which represents most consumer nonmortgage borrowing, is up 5% year over year, and the interest rates on these loans are equal to, or below, the levels that prevailed over the last five years.

Commercial and industrial loans are up 9% year over year. And to those with good credit histories, conforming mortgages are available at 30-year fixed rates of around 6%. That represents an inflation-adjusted mortgage rate that is low by historical standards."

So the current financial crisis is not as deep or as broad as some have feared... He agrees with the Treasury plan...

Blood-letting has the smell of capitulation:

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