World stocks continue drop on emerging market woes

[Omaha Steve]

Source: AP-Excite

By JAMEY KEATEN

PARIS (AP) - Global stocks continued to fall on Monday, extending a rout begun last week, as investors worried about a slowdown in growth in China and other developing economies that is causing big losses among emerging-market currencies.

Markets first became unsettled on Thursday, when a survey indicated a drop in Chinese manufacturing activity, the latest sign that a painful slowdown in the world's No. 2 economy is likely to continue.

When investors worry about global growth, they first pull back from riskier trades in emerging markets. That combined with concerns about specific countries - economic stability in Argentina and a political scandal in Turkey - to convince investors to sell off even more sharply.

"The growing turmoil in emerging markets is inflicting damage ... across the board and no letup is expected in the near term," said Mitul Kotecha, head of global markets research for Asia at Credit Agricole CIB, in a report.

FULL story at link.


Read more: http://apnews.excite.com/article/20140127/DABJ52B80.html

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A woman walks by an electronic stock board of a securities firm in Tokyo, Monday, Jan. 27, 2014. Asian stock markets tumbled Monday as investors factored in the possibility of slowing growth in China and a further reduction in U.S. central bank stimulus. Japan's Nikkei 225 sank 2.6 percent to 14,993.89 as investors sought out havens such as the Japanese yen, causing it to rise against the dollar which is negative for export stocks. (AP Photo/Koji Sasahara)

[jwirr]

1. They are beginning to see that buyers cannot buy when there are no jobs and no spending money.

[Moostache]

3. I wish that was 100% true...

I agree with the premise, I just don't think the "investor class" (ie. leeches and thieves) EVER view the world in terms of the interests of the working classes. The ones I have known and even recently been exposed to are nothing short of self-absorbed slime.

They could give a rat's ass about the jobs and lives of the people they perceive as beneath themselves. My wife and I went out to eat at a nice steak house over the weekend and we were both horrified at the attitudes and sense of entitlement of the patrons of this particular establishment. It was a pricey restaurant and a busy Saturday night, but there was no excuse for the berating of the hostess and servers that we witnessed. These people were abhorrent and all I could think of was the fact that none of them showed even the slightest bit of humility or understanding that despite having the means to eat at a $200+ per meal establishment, they were not inherently "better" than the people working for them that night. It made me sick and really confirmed for me that I just do not fit in that world or hold that worldview.

(I also couldn't help but remember when it came time to tip the staff the discussions that I have read here at DU about it and that made me up the tip significantly...)

[jwirr]

5. I agree they do not care about the working class but when they start losing money because

no one is buying then it becomes their problem. And it only for them a temporary problem. They have enough money to ride damn near anything out.

[DallasNE]

2. Tricke Down At Work

The rich hoard their money and that creates sluggish velocity of money then when you cut off unemployment benefits for the long term unemployed they stop buying cheap stuff from China and presto, the economy of China stumbles. Not so hard to figure out after all.

[Berlum]

4. "Smirk. Sneer." - Trickle-D Republicons (R)

[Ikonoklast]

6. If this keeps up, watch for money to flee China.

Then all bets are off.