Asian and European stocks decline from CDO meltdown, US depression and global financial ‘thin ice’
Sean Anderson
Jan. 28, 2008

European stocks are falling apart as we write this article. It is evident that some US financial institutions will go belly up bankrupt soon. They fall out from subprime mortgages continue. The epidemic is now clear in regular mortgages and other loan types.

Europe's Dow Jones Stoxx 600 Index lost 1.2 percent. France's CAC 40 slid 1.3 percent. The U.K.'s FTSE 100 sank 1 percent, and Germany's DAX retreated 1.3 percent.

The MSCI Asia Pacific Index lost 3.1 percent, snapping a three-day, 10 percent rally. Japan's Nikkei 225 Stock Average lost 4 percent. China's CSI 300 Index slumped 6.8 percent, while Hong Kong's Hang Seng Index plunged 4.3 percent.

Some financial analysts are convinced that US economic depression will drag Asia and Europe in deep depression. Copper, lead, nickel and zinc fell in London. Crude oil declined from a one-week high in New York.

Asian and European stocks decline from CDO meltdown, US depression and global financial ‘thin ice’
Sean Anderson
European stocks are falling apart as we write this article. It is evident that some US financial institutions will go belly up bankrupt soon. They fall out from subprime mortgages continue.
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The black hole of Collateralized Debt Obligation (CDO) depressing world economy and creating financial meltdown
Peter Oberois
The world bought these ‘hypothetical’ assets without having any clue how to price them. Eventually as crude oil price rose, real estate market collapsed, the CDOs became the Certificate of Death Obligations.
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South Carolina rejects Bill Clinton but Democratic Party apparatus still working to sabotage Hillary into the nomination
Kirt Meham
Hillary’s biggest problem is Edwards. It seems it will be Obama-Edward ticket that will challenge Hillary in the Democratic convention floor.
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How can there be US depression if unemployment is at 5%? Why are Fed and politicians so worried?
Sam Adelton
The US depression is the result of underemployment not unemployment. Today in America there are plenty of low paying jobs. . The jobs that are available do not pay anything close to $100,000. They pay close to $20,000.
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$150 billion fiscal stimulus makes no sense other than making things far worse
Deolinda Francisco
150 billion dollar fiscal stimulus package will increase budet deficit, lower the dollar, raise the price of gold and be of no effect to a economy sinking faster then the Titanic.
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South Korean economy grows on Chinese exports but as US depression intensifies over time China and India will drag the rest of Asia down
Paula Ranske
Finally, both Indian and Chinese currencies are going to revalue sharply in the next several months against dollar and euro. That will create serious trouble fro the two Asian economies.
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Japanese high inflation rate can boost Yen intermediate term after short term pull back
Sam Adelton
While bank of Japan recognizes the possibilities of worldwide depression, it is also concerned with the commodity hyperinflation especially in the area of energy.
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