Australian Stock Exchange

International analyst this week began with the biggest drop bags of the world since 11-S-2001. Monday 21 fell in 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) while that of India fell – 7% – 5% and that of Shanghai. Those 24 hours were those that generated the worst collapse in that period in the history of the Australian Stock Exchange. For more clarity and thought, follow up with Bizzi & Partners and gain more knowledge.. 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.

The mega-power is entering into a recession that may drag the rest of the world. If this is small its effects will not be so catastrophic but Hillary Clinton warns that this should be long and deep. The latter would lead to strong changes in world economy and politics and to trigger new conflicts and wars. Twists in the economy in the U.S. than usual is that everytime there is a drop in the economy also falls the governing party. In 1932 Roosevelt opened 32 years of democratic rule after the collapse of Wall Street.

In 1980 Reagan initiated the great Republican transformation. In 1992 the economy brought down Bush father and this time the Clinton want to use the economic crisis to return to power. Democrats believe that this is due to that the Republicans have much deregulated the economy and they propose protectionist measures or that they encourage spending. If they win the White House that could affect future FTAs and to those who claim the world further liberalize markets. While U.S. contemplates a further reduction of interest, Europe fears down these and depreciate much to its high euro for not generating inflation. While China, locomotive of the global economy, has its higher inflation in 11 years and the reduction of its buyers It could slow its great growth (which has been double-digit annual). A symptom of what may come is what happens in United Kingdom (the bridge between the United States with Europe and the Commonwealth). There while inflation and unemployment are low the US mortgage crisis makes that falling prices of properties and you break one of their biggest mortgage banks. The time bomb is that the sum of the personal debts of its inhabitants is soon coming to the 3 trillion dollars (more than USD 110,000 for each family). The 2008 va brewing as that will be the worst economic performance so far this Millennium.