Thursday, October 23, 2008

JSE crashes through 20 000 level - recession reality catches up to the markets

Yesterday newspaper's were calling Trevor Manuel a hero. He has done a good job, but hype and hubris are really what got us into the delusional mess of phantom instruments and infinite growth to begin with. I am not happy about the current malaise, but at least we can begin to operate more realistically. That is a start.
MOUNTING concern that the global economy is hurtling towards recession took its toll yesterday, with the rand plunging to its worst level against the dollar since April 2002 and the JSE taking a hammering.

Fear was heightened yesterday by British Prime Minister Gordon Brown, who predicted that the UK would slip into a recession for the first time since he took charge of Britain’s finances in 1997.

“We must now take action on the global financial recession, which is likely to cause recession in America, France, Italy Germany and Japan and, because no country can insulate itself from it, Britain too,” he said. Brown’s remarks echoed those of Bank of England governor Mervyn King on Tuesday.

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