Panic in stock markets
Wednesday September 17, 2008
Stock markets have been suffering the past few days due to events such as the acquisition of Merrill Lynch by the Bank of America and AIG needing to be bailed out to the tune of a possible $85 billion. This has led to some palpable drops in the value of stock markets globally, with the Australian Stock Exchange doing better than expected compared to other stock markets such as the London Stock Exchange and the frightening effect that these large business collapses have had on Wall St.
An interesting effect of the vastly lowering prices in some areas has been confusion over whether to buy cheap or to continue selling. People have been suspicious for a while now as to when the stock markets will bottom out, so now some people suspect it to be quite close or else for these recent events to have marked it. This has led to many buying shares at discount prices that have normally performed quite well in the past. Nevertheless, if any more financial giants come crashing to the ground in the next few months, traders may find themselves living in interesting times.
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