Is another recession looming ?

[farouq_taj]

Anyone taken a look at the Dow Jones today ?
The FT index has dropped by over 100 points today alone. I sold my shares last week at a loss of 15% on my capital investment.

In the UK several large manufacturing companies have made huge redundancies.

I'm a little concerned, a recession might hit us by the end of this year or 1st quarter next year. Any thoughts ?

Farouq Taj.

[Rida]

I don't mean to be ignorant but what are those figures that you listed above.

[Mudassar]

Assalam alaikum

Are shares allowed in Islam?

[farouq_taj]

Rida:

The Dow Jones and FTSE indexes are used to measure the value of shares on the stock exchange. A fall means on average (I'm simplifying things here as it's not actually a mathematical average) share prices have gone down.


Farouq Taj.

[Paki 420]

HA HA HA, RECESSION is coming, Corruption will take birth soon

[Rida]

Ohhhhhhhhhhhh !!!

[Najim]

Hmmmm ..... I know recession is on its way to Britain .... I knew it when the year 98' started. At least when you work with Government you can anticipate what is going on. Thats why by the time recession hits Britain, I'll be out of here. Hopefully I am going to Australia (may be Canada) for good after my final project for three months in Africa.

[Yasmeen]

Yep!
It's been moving slowly but surely across the globe. The seemingly indestructible Far East, our tottering economies in the Near and Middle East, and now I hear on CNN that the rouble is losing value fast. The Europeans are panicking already and the Americans can't be far behind. This country hasn't really recovered from the gloomy days of the early 90's yet, and with another recession looming...Anyone wanna buy land on the moon

[Rida]

You guys seem pretty knowlegdeable and I am kind of a dolt when it comes to stock and anything involving math. So what if there is another recession looming? How is that bad? I mean does that mean that the price values drop or what? And most of all, how would it affect us? Sorry to be so ignorant but this is not exactly my field.

[Yasmeen]

Rida, I believe there is no such thing as a stupid question, only stupid answers. If you don't ask, how are you going to learn?
Let's see if I remember anything from Economics...
With a recession, usually, comes unemployment as corporations start losing money and lay off people. These people in turn, stop spending and start hanging on to their money in fear. This trend of people not spending, companies not producing, more layoffs, etc. can become a "vicious" downward spiral. In the past in America, when the government was not prepared for such a cycle, the whole country went into a Great Depression. Since then, this country's government has taken measures like insuring deposits in banks so that people don't lose everything.
It seems that the economies crashing in the Far East had no such "safety" measures in place.
I don't remember enough from Finance to talk too intelligently about the stock market. It's all speculation (or educated guessing) as far as I'm concerned. I'll let one of the people who actually invest in stocks to answer your questions there.


[This message has been edited by Yasmeen (edited 08-17-98).]

[KKNIAZI]

Recession…Hmmm…….Well Farooq! Its inevitable ‘cause of collapse of far eastern economies except China n to an extent Japan which play a major role in global market trend and this bearish trend in FTSE, NYSE and other W’tern stock markets is because majority of the companies listed there have huge investments in these Asians markets and they (western) are responsible for these tumbling far eastern economies, if I’m not wrong.

Btw, Farooq this is the time to buy not to sell shares esp. of companies who are investing in new markets.

Yasmeen-G! The surge in GDP growth rate in states is may be because of more stable savings system but more obvious and plausible reason is Heavy arms deals with M’eastern countries and weaker yen.

Haven’t u seen yanks Jumping like chicken without heads, when Yen gets stronger?

Cheers,
Kaleem

[Antidote]

Lunar real estate??? Hmmmm.. not a bad idea!!

Antidote

[Yasmeen]

I'm not kidding!
BTW, I'm so glad you're back Antidote. This forum seems to have gone to pot in the last few days
Yeah, I saw this thing on TV where this guy has an internet site and he's actually marking off properties on the moon and selling titles to people silly enough to fall for his scam. He's even called NASA and told them to get the heck off the moon 'cos they're trespassing on his property!!!
Only in Amreeeca...
Oh, and KK-G, I totally agree with you that the crash of the Eastern economies was somehow orchestrated by the Americans. They are losing their home market advantage in their own country. How long were they going to sit idly by?
No, what I mean by the above comments was that the government, since the Great Depression, has taken measures to protect poor people like you and me; i.e. how all deposits upto $100,000 are FDIC insured. I know some people (e.g. Malaysians) who lost everything because the banks in their countries went under.

[This message has been edited by Yasmeen (edited 08-19-98).]