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Shares plunge: recession warning?

Posted by: 2UE | 5 August, 2011 - 8:29 AM
Shares plunge overnight as warnings of recession return

Shares have plummeted back to GFC-levels as investors come to the realisation major world economies are headed for a downturn. Wall Street fell more than 4% per cent, wiping all gain from this year.

 

 

 

Tim Webster with Dr Chris Leithner on the path ahead for the world economy and what he feels are the reasons behind the problems being experienced on world financial markets.

 

Treasurer Wayne Swan has sought to calm the nerves of Australian investors following a big plunge on world markets overnight.

The Australian sharemarket has lost 4% of its value in the first hour of trade with bank, retail and some mining stocks among the losers.

But Wayne Swan says the fundamentals of the Australian economy are strong compared to the problems the globe is facing.

 

Some leading economists say the futures market is being "too pesimistic" by suggesting interest rates could drop by a full one per cent by early next year.

Futures traders are reflecting the rout on global sharemarkets, amid fears the US and Europe could soon fall into another recession.

The Reserve expects Australia's economic growth to slow this year, but they're predicting the situation will improve by mid-2012.

Chris Caton from BT says despite the problems, rates will remain steady rather than fall.

 

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Blog comments Your Say

  • !!I KNEW IT !!
    This Red Grim Reeper,would Bring us to a Resession,have always Predicted they would,
    it would suprise me,if we did not go into a Huge Resession.Hide Your Dollars.

    !! As All They Know How To Do,Is SPEND SPEND SPEND & TAX TAX TAX..
    They are Digging Themselves Such a Big Hole...AUSTRALIA will Never Ever Recover From
    What They Have Done To This Beautifull Country.
    With All thier!! CHEATING And LYING !!

    Tricia Saturday 6 August, 2011 - 7:55 PM

  • Well said Justin J, that goose swan is #ucking up our country and laughing all the way to the bank. Like Gillard, this goose is a disgrace.
    They are all like that, have a look at bludger Rudd, never worked in his miserable life. Except for operating a paper shredder at nights in Qld.
    I think Justin J should be DPM.

    Abdullah Abdullah Saturday 6 August, 2011 - 7:45 PM

  • Wayne Swan has never had a real job where one works in the real world and earns his or her pay. This bastard has been a life long failed academic. I personally regard him as unemployable. Just watch when his rotten labor party/greens party gets booted, he will head back to some poor gullible University to give him a 'yes' man's job. An utter fool of a man he is in every way.

    Justin J Friday 5 August, 2011 - 8:57 PM

  • Things go up and down in stock market shares etc. history shows us these things and we learn from it. Do we want to have SWANNY & JU-LIAR running the ship when things are crook, No Thank You they are only going to make things worse, as their record shows. History is a wonderful reference!

    Peter B Friday 5 August, 2011 - 1:57 PM

  • On the one hand, this country is in the grip of a World Financial Crisis... so we have to get these stimulus packages going... insulation, schools, bruadband, black boxes for tv's, and heaps of Public Servants (they hate being called that) to make sure there is noone to blame when the stimulus crap fails.
    OK....
    On the other hand, we are located in the Asia Pacific and ...growth has remained strong... According to this dork who is our Treasurer,
    We were not involved in the
    bloody financial crisis.
    But it gave Gillard the opportunity to push her Socialist agenda... knowing she has only one chance as caretaker Prime Minister.
    How much longer will it be for this country to be declared a Communist State?

    Wobblyone Friday 5 August, 2011 - 11:11 AM

  • Dear oh...dear...oh...dear Wayne Swan!! What arrrhh you going to do next?? Juliar, this is just another fine mess you have got us into!!! Get your stupid fkn CO2 tax and shove it down that goose, Swan's throat! Not ours! Furthermore your cleanerenergyfuture, 20 pages of 'crap'!
    Has wasted many, many $Millions of our dollars for nothing!
    N.B. All of our non-recyclable garbage bins are overflowing onto our streets with your brainwashing propaganda!! Nobody wants it!!!
    "THERE WILL BE NO CARBON TAX UNDER THE GOVERNMENT I LEAD"

    HON. GREG CO2MBET Friday 5 August, 2011 - 11:01 AM

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