Those who know the US economy is running on borrowed .... money, and time, have wondered, "Will it come as a rapid crash or a slow, grinding decline?" Judging from the following numbers, it might be the former, and the time might be now.
Japan's Nikkei 225 index nose-dived 5.7 percent -- its biggest percentage drop in nearly 10 years -- to 12,573.05, a day after falling 3.9 percent. Australia's benchmark index sank 7.1 percent, the market's steepest one-day slide in nearly 20 years.
Hong Kong's Hang Seng index, which slumped 5.5 percent Monday, finished down 8.7 percent. In China, the Shanghai Composite index lost 7.2 percent to 4,559.75, its lowest close since August.
I sit here at 5:30am thinking, "Should I move my investments into cash?" Since I don't play around with my money that much, 1) I'm not sure I'd be able to do it rapidly, and 2) I'm not sure it would switch over quickly enough to avoid getting caught in today's pending crash here in the US.
Geeez! Hong Kong, 5.5% Monday and another 8.7% Tuesday. That's nearly 13% in two days.
Sources:
Associated Press, Asian Markets Tumble on US Worries, Yuri Kageyama, January 22, 2008.
Thanks to the comment below. Correction made.
