Global stock markets tanked Monday following declines on Wall Street last week, and global investors seem unpersuaded by the U.S. government's stimulus plan to prevent a recession by issuing $800 tax rebates.
India's principal index tumbled 7.4% Monday, falling 1408 points to 17,605, while China's Shanghai Composite Index dropped 266 points, or 5.1%, to 4914.
Germany's DAX index fell 381 points to 6933, while the CAC 40 in France was down 238 points at 4854; these represent declines of six and four percent, respectively. Some £77 billion in value was erased from UK blue chip shares today, as investors brace themselves for what appears to be a U.S. economy running headlong into recession.
The Dow is currently 14.6 percent below its October 9 record close of 14,164.53, and the index is less than 100 points away from slipping beneath the benchmark of 12,000. A number of analysts are discussing the possibility of a drop of 500 or more points when trading opens in New York Tuesday morning.
Personally, I am going to ride out what seems to be a financial tsunami looming ahead. We have enough equity in our home to avoid almost any conceivable real estate disaster, and we will not be cashing out our 401-K and IRA funds for a couple of more decades, anyhow. Still, it is difficult to keep from drawing comparisons between 2008 and 1929.
Thus, I will keep one eye on FNN tomorrow as I prep for my lectures, much as I would slow down to see a horrific accident. Kind of hard to ignore, right?