Here are some graphs to illustrate the underlying "strength" of the global economy. Remember, we've been hearing from all the "experts" and government "managers" ad nauseam, that the fundamentals of our economy are strong, until last week-end. Almost overnight, it suddenly became necessary to have a $700 billion dollar taxpayer cash injection to keep the economy from a complete meltdown. As is plainly evident from the graphs below, the trend, despite much violent turbulence, is that the markets are shedding value at a steady and accelerating rate.
U.S. markets have lost about 25% of their value during the past year. Tokyo's Nikkei lost almost 23% since the beginning of 2008. European markets fared slightly worse with London's FTSE losing 23% and Frankfurt and Paris shedding around 27%. Toronto fared slightly better, falling only about 17% since the beginning of 2008, cushioned by the record prices of commodities such as oil and gold.
The next three months should be very interesting, given the upcoming elections in both Canada and the United States, and the holiday season. My bet is the markets will continue to tumble, especially when frightened consumers tighten their belts, keep from spending their money, and forgo Christmas shopping altogether. I can hear retailers world-wide trembling already.
U.S. markets have lost about 25% of their value during the past year. Tokyo's Nikkei lost almost 23% since the beginning of 2008. European markets fared slightly worse with London's FTSE losing 23% and Frankfurt and Paris shedding around 27%. Toronto fared slightly better, falling only about 17% since the beginning of 2008, cushioned by the record prices of commodities such as oil and gold.
The next three months should be very interesting, given the upcoming elections in both Canada and the United States, and the holiday season. My bet is the markets will continue to tumble, especially when frightened consumers tighten their belts, keep from spending their money, and forgo Christmas shopping altogether. I can hear retailers world-wide trembling already.
