Nikkei Falls 10%
The carnage continued as US market weakness spread around the world. The Japanese Nikkei tumbled 11.4% before recovering somewhat. The Nikkei fell to 8115,41, last seen since May 2003. The Topix index fell 7.2% to 840.18.
Australia's S&P/ASX 200 fell 7.4% to 4004.90, New Zealand's NZX 50 index gave up 3.5% to 2842.89. South Korea's Kospi lost 8.7% to 1182.16. In Tokyo, shares of Toyota lost 5% and Canon shrank 5.3%, while property major Mitsui Fudosan plummeted 12.9%.
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Sources:
Asian Stocks Fall, Set for Worst Week on Record; Banks Plunge
Kyung Bok Cho
Bloomberg, Oct. 10, 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=apBR9iTfMQbI&
Japan's Nikkei Falls Nearly 10%
WSJ, OCTOBER 9, 2008, 9:29 P.M. ET
http://online.wsj.com/article/SB122359980505421531.html
Thursday, October 09, 2008 | 09:58 PM | Permalink
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Comments
People are not throwing baby with the bath water.
Why was RIMM up today. ? people are still bottom fishing momentum stocks.
Posted by: Sam Jacob | Oct 9, 2008 10:08:42 PM
Wondering LEH got a big position to be settled in Japan? They were one of the most aggresive player over there.
Posted by: MM | Oct 9, 2008 10:10:45 PM
Washington D.C.
9 October 2008
The White House, Situation Room
22:00 hours
Bernanke: War's over, man. Have you seen the Asian markets and the futures? They dropped the big one.
Bush: Over? Did you say "over"? Nothing is over until we decide it is! Was it over when the Germans bombed Pearl Harbor? Hell no!
Paulson: Germans?
Cheney: Forget it, he's rolling.
Bush: And it ain't over now. 'Cause when the goin' gets tough... [thinks hard]...the tough get goin'! Who's with me? Let's go! [runs out, alone; then returns] What the fuck happened to the neo-cons I used to know? Where's the spirit? Where's the guts, huh? This could be the greatest night of our lives, but you're gonna let it be the worst. "Ooh, we're afraid to go with you George, we might get in trouble." Well just kiss my ass from now on! Not me! I'm not gonna take this. Nikkei, it's dead man! Hang Seng, dead! New York Stock Exchange...
Paulson: Dead! George is right. Psychotic, but absolutely right. We gotta take these bastards. Now we could do it with conventional weapons that could take years and cost millions of lives. No, I think we have to go all out. I think that this situation absolutely requires a really futile and stupid gesture be done on somebody's part.
Bush: We're just the guys to do it.
Bernanke: Co-ordinated rate cuts!
Bush: Let’s do it!
That morning at the drug store:
Condaleza Rice to cashier: May I have ten thousand marbles, please?
Posted by: Winston Munn | Oct 9, 2008 10:15:15 PM
I was trying to bottom fish last week to, escaped with few scrapes. I realized that the bottom doesn't matter. The fact is the market will fall whenever that may be, then rally up, BUT then will come down again to test higher lows at best. So, all this bottomfishing is for that snap rally. In the bigger scheme of things, once it finds its bottom it will digest, go flat for a while with snap ups and downs.
So Steve Barry is right to wait out on his QIDs because even he gets caught in the snap rally, he will have another chance to sell them after the snap rally when markets will dive even if it is just to fool more shorts into the game.
That's how I see it.
Posted by: Mich(AU1881) | Oct 9, 2008 10:15:47 PM
Eh, Nikkei, Hang Seng, Kospi, Topix, the average American doesn't care about that esoteric stuff.
Instead, let's focus on how this market collapse is affecting the average American:
OH NOES!!1! MOTHERS COOKIES SHUTTERS ITS DOORS!!!!
From The Consumerist: "If you're a fan of those pink and white frosted Circus Animal cookies from Mother's, either stock up or start priming your nostalgia, because this week the company closed its doors abruptly. They've cited the expected reasons—the rising cost of raw materials, and an inability to borrow in the frozen credit market. Unfortunately, the private equity firm that owns the company (it's passed through at least four owners in the past 18 years) didn't give employees the federally required 60-day notice, citing "unforeseeable business circumstances." If they couldn't secure money to pay salaries, that may very well be the case..."
http://consumerist.com/5061209/mothers-cookies-goes-out-of-business-kills-off-circus-animals
Aaaiiee! Everybody panic! Where will I get by diabetic-coma-inducing pink-sugar-cookie rush now?
(On a more somber note, I noticed that the Ted Spread has climbed to an eye-watering 4.23 today. Forget the Dow, forget the equity markets - that's the number to watch.)
Posted by: Mr. Tongue-in-Cheek | Oct 9, 2008 10:17:25 PM
Where have all the good years gone?
Nikkei is back to where it was in the early 80's (Not adjusted for inflation!). What will the status of my 401k be in 25 years?
Posted by: lost | Oct 9, 2008 10:19:52 PM
Capitulation as I define it. No comments after a post.
Posted by: Richard | Oct 9, 2008 10:26:54 PM
My 3-year old puts all her money in her Piggy Bank. Looks pretty smart compared to some of the financial geniuses I have seen in the last year on CNBC. I told her that inflation would eat up her savings..she said
"Daddy, at least I will have savings."
Posted by: Rich Shinnick | Oct 9, 2008 10:29:25 PM
Futures are getting killed again down 239. Do we see seven thousands tomorrow?
Posted by: Joe | Oct 9, 2008 10:29:30 PM
yippeeeeeeee!!!
This is great.... The truly Laissez-faire of us should be thrilled. The market is doing what it should, Shaking out the worthlessness in the economy.
This is what we have hoped for for 80 years.
Shake out all the worthless Hedgies treating the market like a casino. all the Legislators that are effectively Socialists. Any Bank that made a bad loan. Anyone Foolish enough to rely on any form of credit. Senior citizens relying on social security, instead of prudent money management. A car industry that is so worthless it's still the same technology from 1910. Technology industry that is more a Kludge of Blogs and twitters and instant messaging and Flashy Shiny Bells and whistles than function. The Worker Bees who spend their day surfing the Web. The corporate heads that are just trying to get enough credit to "Keep dancing" for one more day. An entire economy functioning on the financial shell game and service jobs.
Pack up your crap and move to the country, try and grow enough potatoes to ride it out.
Yippee! Right?
Posted by: Eric Davis | Oct 9, 2008 10:30:06 PM
Will the market rally after Bush's speech tomorrow or sell off?
Posted by: Jay | Oct 9, 2008 10:30:30 PM
Futures really tanking now...anyway I'd like to commemorate John Lennon's Birthday with a song for Wall Street:
Instant Karma's gonna get you
Gonna knock you right on the head
You better get yourself together
Pretty soon you're gonna be dead
What in the world you thinking of
Laughing in the face of love
What on earth you tryin' to do
It's up to you, yeah you
Instant Karma's gonna get you
Gonna look you right in the face
Better get yourself together darlin'
Join the human race
How in the world you gonna see
Laughin' at fools like me
Who in the hell d'you think you are
A super star
Well, right you are
Well we all shine on
Like the moon and the stars and the sun
Well we all shine on
Ev'ryone come on
Instant Karma's gonna get you
Gonna knock you off your feet
Better recognize your brothers
Ev'ryone you meet
Why in the world are we here
Surely not to live in pain and fear
Why on earth are you there
When you're ev'rywhere
Come and get your share
Well we all shine on
Like the moon and the stars and the sun
Yeah we all shine on
Come on and on and on on on
Yeah yeah, alright, uh huh, ah
Well we all shine on
Like the moon and the stars and the sun
Yeah we all shine on
On and on and on on and on
Posted by: Steve Barry | Oct 9, 2008 10:31:24 PM
I have another that Hank Paulson taught me:
If you're happy and you know it, clap your hands.
If you're happy and you know it, clap your hands.
(and so on.....I know...pretty easy song, ain't it..)
Posted by: Bruce in Tennessee | Oct 9, 2008 10:39:12 PM
If you search for tenderness
it isn't hard to find.
You can have the love you need to live.
But if you look for truthfulness
You might just as well be blind.
It always seems to be so hard to give.
Honesty is such a lonely word.
Everyone is so untrue.
Honesty is hardly ever heard.
And mostly what I need from you.
I can always find someone
to say they sympathize.
If I wear my heart out on my sleeve.
But I don't want some pretty face
to tell me pretty lies.
All I want is someone to believe.
Honesty is such a lonely word.
Everyone is so untrue.
Honesty is hardly ever heard.
And mostly what I need from you.
I can find a lover.
I can find a friend.
I can have security until the bitter end.
Anyone can comfort me
with promises again.
I know, I know.
When I'm deep inside of me
don't be too concerned.
I won't as for nothin' while I'm gone.
But when I want sincerity
tell me where else can I turn.
Because you're the one I depend upon.
Honesty is such a lonely word.
Everyone is so untrue.
Honesty is hardly ever heard.
And mostly what I need from you.
Posted by: Honesty | Oct 9, 2008 10:39:23 PM
Tomorrow either a take-your-breath-away sell off amounting 10-15% sell off or a 10% rally.That's where we are headed.This is irrational behavior comparable only to Nasdaq 2000 bubble year.I am a buyer tomorrow, that too deep-in-the-money calls.
Posted by: Jagmohan Swain | Oct 9, 2008 10:41:53 PM
I hope no one takes offense at my little Animal White House spoof - just my way of whistling past the graveyard.
The fact is my knees are shaking.
Posted by: Winston Munn | Oct 9, 2008 10:42:37 PM
This is great.... Right?
The truly Laissez-faire of us should be thrilled. The market is doing what it should, Shaking out the worthless parts of the economy.
This is what we have hoped for for 80 years.
Shake out all the worthless Hedgies treating the market like a casino.
An entire economy functioning on the financial shell game and service jobs.
Pack up your stuff and move to the country, try and grow enough potatoes to ride it out.
This is great. Right?
De-leveraging is a bitch.
We reap what we sow.
Posted by: Eric Davis | Oct 9, 2008 10:51:33 PM
No way am I buying (or selling) tomorrow. Time to sit back and watch it unfold.
There will be plenty of time to get in (and out). I think......I hope.
Posted by: Jeff M. | Oct 9, 2008 10:53:52 PM
This is great.... Right?
The market is doing what it should, Shaking out the worthless parts of the economy.
Shake out all the worthless Hedge funds treating the market like a casino.
An entire economy functioning on the financial shell game and service jobs.
This is great. Right?
We reap what we sow. Find a chair.
Posted by: Eric Davis | Oct 9, 2008 10:55:12 PM
Winston. I get laaaaaaaugh evrytime that John Belushi line comes out.
Posted by: johnnyvee | Oct 9, 2008 10:55:46 PM
This is great.... Right?
Good news to the Truly Laissez-faire.
The market is doing what it should, Shaking out the worthless parts of the economy.
Shake out all the worthless Hedge funds treating the market like a game of Texas holdum.
Congress that spends all 2 days a week they are in session fighting about Cats and Dats.
Politicians so Silly as to use Economic collapse, as a tool of their campaign.
Any Bank that made a bad loan.
Anyone Foolish enough to rely on credit.
Senior citizens relying on social security, instead of prudent money management.
A car industry that is so worthless it's still the same old technology from 1910.
Technology industry that's greatest claim to fame of late that "I can Surf from my phone!"
The Worker Bees who spend their day surfing the Web.
The corporate heads that are just trying to get enough credit to "Keep dancing" for one more day.
An entire economy functioning on the financial shell game and service jobs.
This is great.
We reap what we sow. Find a chair.
Posted by: Eric Davis | Oct 9, 2008 11:01:13 PM
Bobby McFerrin has the right attitude:
http://www.youtube.com/watch?v=yjnvSQuv-H4
Posted by: mhigh | Oct 9, 2008 11:01:29 PM
This from Nouriel Roubini - I believe needs to be shared now:
"At this point severe damage is done and one cannot rule out a systemic collapse and a global depression. It will take a significant change in leadership of economic policy and very radical, coordinated policy actions among all advanced and emerging market economies to avoid this economic and financial disaster. Urgent and immediate necessary actions that need to be done globally (with some variants across countries depending on the severity of the problem and the overall resources available to the sovereigns) include:
another rapid round of policy rate cuts of the order of at least 150 basis points on average globally;
a temporary blanket guarantee of all deposits while a triage between insolvent financial institutions that need to be shut down and distressed but solvent institutions that need to be partially nationalized with injections of public capital is made;
a rapid reduction of the debt burden of insolvent households preceded by a temporary freeze on all foreclosures;
massive and unlimited provision of liquidity to solvent financial institutions;
public provision of credit to the solvent parts of the corporate sector to avoid a short-term debt refinancing crisis for solvent but illiquid corporations and small businesses;
a massive direct government fiscal stimulus packages that includes public works, infrastructure spending, unemployment benefits, tax rebates to lower income households and provision of grants to strapped and crunched state and local government;
a rapid resolution of the banking problems via triage, public recapitalization of financial institutions and reduction of the debt burden of distressed households and borrowers;
an agreement between lender and creditor countries running current account surpluses and borrowing, and debtor countries running current account deficits to maintain an orderly financing of deficits and a recycling of the surpluses of creditors to avoid a disorderly adjustment of such imbalances.
At this point anything short of these radical and coordinated actions may lead to a market crash, a global systemic financial meltdown and to a global depression. The time to act is now as all the policy officials of the world are meeting this weekend in Washington at the IMF and World Bank annual meetings."
Posted by: Winston Munn | Oct 9, 2008 11:05:46 PM
Nouriel:
Maybe we need a global depression to get out from under this mountain of debt. What else could accomplish this? It is time for the wealthy billionaires out there to give some back and help those that will be penniless. Buffett has 60 Billion...Gates has about 50 Billion...c'mon, nobody needs more than 10 Billion...that's 90 Billion that can be contributed from only 2 guys.
Posted by: Steve Barry | Oct 9, 2008 11:15:57 PM
THAT RUSSIAN PROVERB, AGAIN
Oh how boring the markets were in 2004, in 2005, in 2006, and in so much of 2007. That bull, so long in duration, so short in gain. And in such boredom, in such desperation for excitement -- for "yield," came the leverage that finally did the trick. In one year, the gains of five erased, and now the market time machine is eleven years back.
So rapid, so many rapids. So captivating.
Watching the markets mercilessly trace their destructive paths down the charts, one senses the fatal indifference of the invaders that laid waste the Earth in "The War of the Worlds." Would that the forces that have traced these paths were to now vanish with the same rapidity as their Verneian ancestors.
Posted by: AKA_CES | Oct 9, 2008 11:18:34 PM
