January 23, 2008

Stock markets crash around the world

The world stock markets to a dive for a day running fuelling rumours of a US recession and the fallout too, which would affect virtually every other country around the world.

The US market and economy has been seriously battered for the last six months or so, with housing market problems and now with a recession looming it seems like many investors have decided to cut and run this huge amount of selling is why the markets have seen large falls.

In order to try and stop the rot, the US government cut their interest rates, in an early morning announcement told the public that there would be a drop in interest rates, but the markets did not react in the desired manner. Normally in these cases the price will stabilize after a few days of panic.

Source [Yahoo News]