Shares fall on more economy fears

Shares all over the world have been falling down this week. This is because the fear investors have. They think there will be a global recession. On Tuesday the Down Jones lost 2 percent.
The fact that the future of General Motors is uncertain has lead to more doubts.

In Europe and Asia the shares also fell. Just as the oil price, who felt from 147 dollars a barrel in July to 59 dollar on Tuesday 12/11.In the UK the FTSE 100 share index lost 3.6 percent. In Japan the Nikkei lost 3 percent.Along Neil Mackinnon, chief economist at ECU Group, markets are afraid of the economy and the daily bad news.On Monday European and Asian markets made some profits after the Chinese government had announced they would invest 586 billion dollar in the economy. But all the shares who made profit that Monday lost everything again on Tuesday.Jim Herrick, manager of equity trading at Baird & Co thinks we need clarity. Without clarity the bad times could last a long time.

I think our economy will slow down because of the bank crises and because of the fear people and organizations have at the moment. Investing your money in these times is very risky. People also prefer saving their money than spending it. They don’t know what will happen in the future so they are playing safe. I agree with Jim Herrick on the fact there must be clarity. When companies keep silent about problems they could get further into these problems. The perfect example is Fortis.
Another problem is the car industry, I think the governments need to invest in these sectors. It are big companies and when one of those companies goes bankrupt, there could be a new and harder crises.


source:
http://news.bbc.co.uk/2/hi/business/7723127.stm