I love Chicken Little stories like this.
Yahoo!: TSX plummets 585 points on credit fears, biggest drop seen in six years
Yahoo!: TSX plummets 585 points on credit fears, biggest drop seen in six years
The Toronto stock market fell as much as 585 points or about
4.5 per cent in Thursday trading, the main index's biggest drop since the
telecom-stock bubble burst six years ago.
The TSX and stock markets around
the world have been decimated over the past two weeks as fears have slowly
spread over credit problems. Resource stocks led declines, with investors
worried that the global credit squeeze could damage slash demand for
commodities.
The drops in recent weeks have wiped out the Toronto market's
gains year-to-date.
The TSX had been up almost 14 per cent for the year as
of July 19, when it hit its most recent record high.
But an increase in the
rate of defaults on subprime mortgages in the U.S. - loans given to customers
with poor credit history - sparked the massive selloff.
They always make it sound so dire. Oooh, largest dropoff since the DOTCOM era! That sounds so dramatic!
Better yet is how these stories always have to have a single, easily explained reason, whether or not it's accurate. It seems that subprime losses are now the boogeyman of the moment. I expect that the next time I'm at a restaurant and the waiter screws up my order, she'll blame it on the subprime crisis instead of the kitchen staff.
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1 comment:
Been ignoring all this media panic. I look at my accounts a couple of times a year, to reposition or balance. So, anyway, it did light me up when I heard on the radio that you can't trade at Schwab over the 'net. Then, I remembered, I don't trade.
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