worldwide stock index crash due to US recession?

It only took the german index DAX two hours to temporally loose 5,5% of it’s value (decline of 403 points to 6911) this Monday morning, following bad results from Japan and China, but mainly due to bad news in the financial industry, mainly from Banks declaring billions of losses due to the crash in the american sub prime market. When it comes to communication some Banks did a really bad job – announcing two month ago they are not affected – and than declaring a billion loss. I think this is a considerable event, since all indicators showed an rise of german economy, good outlooks even with a declining US market. Afraid of world recession as well, some analysts are already having panicking attacks on the floors.

The australian index S&P/ASX200 lost for the 11th consecutive day. That is the worst rally in 26 years. And again, anxiousness about a US recession.

Interesting to see how the Dow Jones will start into the week and if the other stock markets may recover or further decline. Lucky me I don’t have that much money invested yet, maybe I should have a look and buy some when they are really down – possibly really really down.

What is it, that the US is still the locomotive of global economy?

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