Markets poised for severe fall, says King

[metalman]

Markets poised for severe fall, says King

By Edmund Conway, Economics Editor
Last Updated: 12:42am GMT 15/11/2007

Mervyn King's warning came as the Bank gave a firm indication that it plans to cut interest rates

The Bank of England Governor has issued an extremely unusual warning on world stock markets, indicating that shares may be heading for a major fall.

Mervyn King said the full impact of the credit crunch had not yet been felt on equity markets in the West and in developing countries, saying that the possibility of share price falls were one of the biggest risks facing the world economy.

His warning came as the Bank gave a firm indication that it plans to cut interest rates as many as three times over the next two years to protect Britain's economy in the wake of the credit crunch. The signal caused the pound to drop to a four-year low against the euro, with the single currency now worth 71.13p.

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FIRST!

[touchring]

Re: Markets poised for severe fall, says King

Inflation.

[Guest]

Re: Markets poised for severe fall, says King

Deflation Guru will reveal himself in our hour of greatest crisis. :confused:



DEFLATION_GURU_REVEALED.jpg

[touchring]

Re: Markets poised for severe fall, says King

I think there will be a mix of deflation and inflation.

American real estate is deflating.

Stocks are deflating.

Food commodities are inflating.

[Guest]

Re: Markets poised for severe fall, says King

Robert "The Pretzel" Prechter looks like he's on amphetamines.

[GRG55]

Re: Markets poised for severe fall, says King

Markets poised for severe fall, says King

By Edmund Conway, Economics Editor
Last Updated: 12:42am GMT 15/11/2007

Mervyn King's warning came as the Bank gave a firm indication that it plans to cut interest rates

The Bank of England Governor has issued an extremely unusual warning on world stock markets, indicating that shares may be heading for a major fall.

Mervyn King said the full impact of the credit crunch had not yet been felt on equity markets in the West and in developing countries, saying that the possibility of share price falls were one of the biggest risks facing the world economy.

His warning came as the Bank gave a firm indication that it plans to cut interest rates as many as three times over the next two years to protect Britain's economy in the wake of the credit crunch. The signal caused the pound to drop to a four-year low against the euro, with the single currency now worth 71.13p.

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FIRST!

Hmmmm. A Central Banker turns stock market prognosticator. Wonder if King's performance in this new career tact will prove somewhat better than Bernanke's - he who told us repeatedly about everything being "contained"...

[metalman]

Re: Markets poised for severe fall, says King

Hmmmm. A Central Banker turns stock market prognosticator. Wonder if King's performance in this new career tact will prove somewhat better than Bernanke's - he who told us repeatedly about everything being "contained"...

maybe he's the new greenspam, except without the following. greenspam's original irrational exuberance speech was damn effective, as I recall.

[Tulpen]

Re: Markets poised for severe fall, says King

maybe he's the new greenspam, except without the following. greenspam's original irrational exuberance speech was damn effective, as I recall.

Yes, but for how long? One full day?

[GRG55]

Re: Markets poised for severe fall, says King

maybe he's the new greenspam, except without the following. greenspam's original irrational exuberance speech was damn effective, as I recall.

Good point.

But wasn't it Greenspan that also told us it was a "New Economy" with unlimited opportunity for productivity gains about 10 minutes before the Naz peak? And how we should all rush out and save money with variable rate mortgages when rates were at 1%? And how the worst of the housing problem was behind us just before he pulled the rip cord after bailing out? Hmmm.