Caen Monday 21 bags dropped bags of Japan – 3.9%, England – 5.5%, France – 6.8%, Germany – 7.2% and Hong Kong – 6.4%. The next day the latter fell another – 8.7% (producing losses of US $ 320,000,000 and its worst crash since the Asian crisis of 1988-89) and the Shanghai – 7%. Australia had the worst fall from its bag in its history in a span of 24 hours. The bag of Mumbai (India) collapsed in 48 hours – 12%. The panic was arrested after the U.S. Federal Bank to cut interests in – 0.75% (its greater reduction in 25 years) and Bush announced a package of US $ 150,000,000 be inject encouraging consumption and reducing taxes. However, new ups and downs and crises ahead while markets show altered. So far January has lost approximately $ 10,000,000,000 worldwide as a result of the depreciation of the values of the shares.
In some markets the fall has implied a loss of – 20%. Everything indicates that this must be the year in which the world is approaching or enters one recession. The effects of the crisis in the largest economy in the world (the USA) should affect in an increasingly globalized market. Even Europe is not to much lower their interests nor devalue the high euro because they fear that this would boost inflation (which they try to keep single-digit low) and would that you lower savings. United Kingdom barely contemplates lowering their rates from 5.5% in a quarter-point because it wants to continue to show large savers who better to save in depreciated dollars offered few rates of return, the pound is a high, solid currency and generates best interests. However, the British economy is so intertwined to American that this is giving the first signs of a downturn, that can spread to Europe and the Commonwealth.