Bailout Hope Fails To Boost World Markets

(AP)  World markets fell Friday in the wake of another plunge on Wall Street amid doubts that Washington's bank bailout plan will prevent a recession in the U.S. and an economic slump around the world.

Dismal data on the U.S. economy - a vital export market - helped send Japan's benchmark Nikkei 225 stock average skidding 216.62 points, or 1.9 percent, to 10,938.14, the lowest since May 18, 2005.

Virtually all Asian markets were in the red. Hong Kong's Hang Seng index slid 2.9 percent to 17,684.40, while key indices in Australia, Singapore, India, Malaysia and Thailand also fell. Only Taiwan bucked the regional trend and edged higher.

European markets opened modestly lower, with Britain's FTSE 100 down 0.5 percent and Germany's DAX down 0.3 percent.

Investors seemed unenthused about the possible passage later Friday of a US$700 billion bank rescue plan aimed at stabilizing the U.S. financial system. A revised version of the bailout bill was passed Wednesday by the U.S. Senate and the House of Representatives was expected to vote on the package Friday, but approval was far from assured.

Still, even if the package passes, investors are pessimistic about the outlook for the U.S. economy - a vital export market - and realize that cleaning up the bad debt mess at the core of the global credit crisis will take a long time.

"The bailout could move us toward a solution, but there are many unresolved issues," said Tim Rocks, Asia strategist at Macquarie Securities in Hong Kong. "We're starting to see the first evidence that the U.S. economy is starting to suffer, and this will have an impact on Asia exports through next year."

Wall Street took a dive Thursday as numbers from the U.S. Labor Department showed that initial claims for jobless benefits increased by 1,000 to a seasonally adjusted 497,000, a seven-year high and significantly above analysts' estimates of 475,000.

Also, the Commerce Department said that U.S. factory orders in August dropped 4 percent compared to July, a much steeper decline than the 2.5 percent drop analysts expected and the biggest setback in nearly two years.

Japanese automakers sank for a second day Friday after the industry reported September sales plunged in the U.S. - their biggest overseas market.

Shares of Toyota Motor Corp. fell 5.3 percent after it said Wednesday that U.S. monthly sales fell 32 percent. Nissan Motor Co. tumbled 7 percent and Honda Motor Co. fell 5.5 percent.

"It is clear the U.S. auto market, for one, is expected to stay sluggish," said Noritsugu Hirakawa, strategist at Okasan Securities Co. in Tokyo.

Other decliners included Nintendo, maker of the hit "Wii" home computer game, which sank 7 percent, and Kyocera, down 3.4 percent.

Rocks of Macquarie Securities said he expects Asian technology, shipping and steel industries to struggle as U.S. consumer demand for Asian exports weakens.

"All the big export sectors are the most at risk," he said. "This is not a good scenario any way you look at it for Asia for next year."

On Thursday, the Dow Jones industrial average fell 348.22, or 3.22 percent, to 10,482.85. U.S. stock market futures were up modestly, suggesting Wall Street would open slightly higher.

The dollar edged up to 105.16 yen from 104.97 late Thursday in New York. The euro climbed to US$1.3862.

Oil prices dipped after tumbling in New York trading. Light, sweet crude for November delivery was down 65 cents to US$93.62 a barrel in electronic trading on the New York Mercantile Exchange.

Markets in mainland China, South Korea and Indonesia were closed for national holidays.

[zietzke-2009]

WAKE UP !

THIS BAIL OUT SCAM WAS ONLY DESIGNED TO BENEFIT THE "HAVE MORES"...(BUSH''S BASE)....He even said this !

The foreign markets are not going to fall for this bail out scam. Our Government just screwed the American people again and this time our children will be paying for this rip off for decades !

Over 80 % of the American people opposed this scam...
The government did it anyway....WE THE PEOPLE ?
What a JOKE !! GOD BLESS AMERIKA !!

LET THEM EAT CAKE

[north1949]

Syncityq, you remark that putting the burden of the world markets onto the backs of the US taxpayer is unfair. However, it is equally unfair that it was the lack of regulation in the US financial system and the agressive marketing of ABCP''s and other financial products to the rest of the world that created the problem, especially as these financial products were supposedly highly rated and insured. Whenever the US system requires capitalization, it looks to the world for that capital. European, Canadian, and Asian banks
responded, investing in American financial offerings.
Of course, there was the assumption that these products were as sound as promised. It is the unmitigated greed and dishonesty of these American mortgate companies and fund managers that has led to the threat of a world-wide recession. The governments of Europe and Canada are likewise being asked to pump billions of dollars from their respective central bank into lending institutions in order to free up credit. You also mention that the US should never be drawn back into the global economy, as that is the reason for your problems. False. History has shown that protectionism slows economic growth rather than generating it. You need foreign markets to purchase your goods and reduce your trade deficit. Educating yourselves is the first step!!

[lochlan-2009]

The passage of this Bill clearly violates the Law.

Posted by didormanii

These people are cashing out on America. They are stealing every last cent they can, so they can transfer it offshore to be protected from the economic collapse we all will be living through by next summer. "This sucker is going down" and Americans are mute as the propaganda machine media blares support suicide, and hushes critics and protests everywhere. Does anyone know what the word "representative" means? Obviously our "representatives" don''t have any issue in telling their consituency, we can go to hell and probably will, now.

What do these people have to do to get Americans to defend themselves from their assault and robbery, start killing us, round us up and put us in camps? What?

They''re grabbing the money and running, suckers. It''s a New World Order.

[bluepointer]

Congressman Barney Frank and Senator Chris Dodd should both be investigated and forced to resign their seats in Congress. The root cause of the current financial crisis can be traced to Fannie Mae and Freddie Mac. Both Frank and Dodd consistently blocked legislation to rein in questionable loan practices by Fannie Mae and Freddie Mac and now the whole financial system of America has been poisoned. Barney Frank in particular pushed for looser regulation of these two institutions. And now House Speaker Nancy Pelosi wants to put Barney Frank in charge of leading an investigation into the housing meltdown. It''s like putting the fox in charge of inspecting the interrior design of the hen house. Let''s also not forget that Barney Franks longtime partner (lover) was a top Fannie Mae executive. Talk about a sweetheart deal. Wall Street does deserve a lot of the blame. But corrupt politicians like Frank and Dodd made this whole sorry mess possible. Thanks guys!

[truthislife1]

I''m sure many of you lost more, but I only had 20G saved up for retirement and 25% of that dissapeared in a heartbeat. Many of you lost hundreds of thousands. I''m sorry.

[babooph]

The economy should not move more rapidly than the worlds resources & skills-the only parameter that should cause radical change, may be OVERPOPULATION-this down may be mainly motional ,due to a lack of confidence in those that cannot lead,but are in the chair?

[oly_joe]

It goes to show that the economic crisis goes beyond the mortgage meltdown .. factories and businesses aren''t doing well due to peoples reluctance to buy and unemployment is rising because companies aren''t making enough money to cover their payrolls

[ibzjem]

http://www.factcheck.org/elections-2008/who_caused_the_economic_crisis.html

Here''s a summary of the cause.

[oscarez]

This bailout pig, even if you put lipstick on it, will still be a pig and the world markets know it.

[tibu987]

Why don''t I feel good about this?

Is it perhaps because this money will pay the foxes for raiding the chicken coop.

That this bailout will reward the very people who caused the problem.

Keep all this in mind when you vote for your elected
officials. Congress and the Senate are as guilty as those on Wall Street.

Vote them out of office.

Go to govtrack.us to see how your Senator or Congressman voted.