Friday, November 14, 2008

It's just a bloody bullfight!

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

US rose, we did. US fell, we're crumbling too! We paid no heed to warnings by a Nobel Laureate (Krugman) and now we're paying the price for it. Gyanendra Kashyap notes...

The ecstasy and enthusiasm of being an influential part of the stock market have 'all' come to a crashing halt! And why so? Well, in just the past two months, there have been some incredibly deplorable 'free-falling acts' across the globe, thereby, at best, reducing hopes of many millions to nought, and stripping many investors thereby granting them the crown of penury, at worst! For Dow Jones, Nikkei, BSE, Hang Sang et al, RED is the colour for the moment; be it retail investors or institutional investors. So who's the real culprit? Call it ‘global meltdown.’

Governments across the globe have been adopting measures to find their ways round the crisis trap, yet no respite is in the offing, and for once, market pundits, critics and doomsayers are unanimously forecasting that the 'worst' is yet to come. Post 2001, the US economy (the major concern as of now) grew aggressively and markets worldwide took the good news in their stride, growing, keeping the American Dream on the foreground. And this is precisely the reason why the multi-billion dollar bailout packages, economic stimulus grant, aggressive interest rate cuts et al have wounded all global markets. Globally, investors are worried about the stability of the largest economy while living in the fear that there are more bad news to come even for their respective economies, the volatile phase that stock exchanges worldwide are going through being the living proof. It is not a new phenomena though, this volatility of markets. However, what stuns one is the frequency and the amplitude of fall..

The likes of Wall Street and Dalal Street have been teetering on the brink of panic for the last couple of months, vulnerable to any bad news (most importantly the one which emanates from the US). The anniversary of the stock market peak has turned into one of the darkest days in the history of Wall Street. Defying all efforts to stave off the current turmoil, the Dow Jones plummeted by 679 points on October 9, 2008, alone and the average crashed below the 9000 level for the first time in five years, vapourising $872 billion worth of investments; now that was bound to give birth to some major rounds of panic in First World economies!



For more articles, Click on IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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