Asia stocks sink after Wall Street tumbles

Because of concerns over an ailing U.S. auto industry, a string of layoffs and the lowest closing of the Dow Jones since 2003, the global stock markets were down and the price of oil took a dive under $50 a barrel.
In mid-July the oil price reached an all-time high and now, due to bad economic forecasts and economic recession, the price has sunk under $50 a barrel. Because of the recession, the demand of crude oil has gone down a lot.

Also the high number of unemployment reached a maximum in 16 years. Because of this, the number of unemployment insurances raised to its highest levels. The number of initial filings for state jobless benefits have increased by 27,000 to 542,000 . This is really bad news and the American government is considering to give more benefits for the jobless.

White House press secretary Dana Perino said that the economy has slowed down a lot due to the recent financial and credit crisis, and the president is concerned about the people who have lost their jobs. He wants that anybody who wants to work, can find employment.
Elsewhere, in Europe and Asia, stock markets didn’t do well. In Europe, most important stock markets like the London’s FTSE and the Paris’ CAC have lost 3% while in Asia the Japanese market slumped.

The investors are still very fearful and are holding back their investment. They are also afraid of a bankruptcy in the automotive industry. According to some analysts this could be a sign to the broader economies. According to Todd Morgan, senior director of Bel Air Investment Advisors, this situation brings back the focus on the lack of confidence of the investors.
The markets cry for a solution, that will change the attitude of the investors.

Again really bad news for the stock markets. They make a lot of losses and the fear of the investors just can’t be taken away. I don’t know where this will end. A recession Is inevitable. But thanks to the recession, the price of crude oil has declined a lot. This is good for the people because winter is now coming and a lot of people will have to buy gas for their heating. The high number of unemployment is a real problem for the US, and the government will need to come up with a good plan to tackle this situation. The automotive industry is now also suffering a lot of losses and this will probably cause more layoffs. This is not a good sign towards the investors. The governments really need to do something quick to prevent a further crisis.
Source CNN : Asia stocks sink after Wall Street tumbles (20/11/2008 18u30)http://edition.cnn.com/2008/BUSINESS/11/20/global.markets/index.html