Such fundamental changes in the supply side of the market naturally drove oil prices lower a lot lower. Prices plummeted by more than half in a period of just a few months last year, catching many oil traders and analysts by surprise.

BRUSSELS Emerging markets currencies are crashing, and their central banks are busy tightening policy, trying to stabilize their countries financial markets. Who is to blame for this state of affairs?

People still talk about October 28, 1929, or October 19, 1987. Big drops get their attention, and this primes some people to be attentive for them in the future, and to be ready to sell if another one comes.

LONDON China s stock market has plunged yet again, this time by 8.5 the market s second largest fall in a single day, and the largest since the global financial crisis. The roller coaster ride is far from over.

We also had the long slide from 1977 1982 that followed a 40 collapse from 1973 1975. Before that, we had declines in 1946 1949, 1937 1942, and the biggest of them all in 1929 1933.

The Emerging Market Currency Rout

Girl 3 Like the stock market, it goes up and down and stuff.

Unemployment up. Housing values down. Equity markets down.

When the oil price halved last year, from 110 to 55 a barrel, the cause was obvious Saudi Arabia s decision to increase its share of the global oil market by expanding production. But what accounts for the further plunge in oil prices in the last few weeks to lows last seen in the immediate aftermath of the 2008 global financial crisis and how will it affect the world economy?

While Chinese equities initially bounced 14 off their July 8 low, the 8.5 plunge on July 27 suggests that that may have been a temporary respite. The likelihood of forced deleveraging of margin calls underscores the potential for a further slide once full trading resumes.

The February 27 decline began with an 8.8 one day drop in the Shanghai Composite, following news that the Chinese government might tax capital gains more aggressively. This news should have been relevant only to China, but the drop there fueled declines worldwide.

The market is volatile, with rapid short term peaks and valleys in business volume.

The futures market at the Chicago Mercantile Exchange is now predicting declines of around 15 more before the prices bottom out in 2010. These are the market s forecasts and it is not a very liquid market.

And in the mean time, personal savings absolutely plummeted.

Market analysts held that the corn futures price declined on decreasing trading volume, while foreign countries' increased imports of soybeans from the U.S. drove up the soybean futures price.

But the fall in housing prices is unlikely to turn into a rout, because real demand for houses will remain strong after speculative demand is driven from the market. As soon as housing prices fall to an affordable level, buyers will enter the market and set a floor under the decline.

Stock Markets Fear of Falling

BERKELEY For more than 170 years, it has been accepted doctrine that markets are not to be trusted when there is a liquidity squeeze. When the prices of even safe assets fall and interest rates climb to sky high levels because traders and financiers collectively want more liquid assets than currently exist, it is simply not safe to let the market sort things out.

WASHINGTON, DC Today, the whole world is being hit by a tremendous financial crisis, but Russia is facing a perfect storm. The Russian stock market is in free fall, plummeting by 60 since May 19, a loss of 900 billion.

Perhaps the buy on dips confidence index has slipped lately because of negative news concerning credit markets, notably the US sub prime mortgage market, which has increased anxiety about the fundamental soundness of the economy.

The reasons for that crash are complex, but, as I discovered in my questionnaire survey a week later, it would appear that people ultimately did not trust the market s level. As a result, they were interested in strategies such as the portfolio insurance strategies that were popular at the time that would allow them to exit the market fast.

With tax revenue collapsing and expenditure ballooning, the government found itself running such large deficits that the markets were spooked government bond prices collapsed, interest rates soared, and the country found itself unable to finance its deficit. Where were the rock bottom interest rates that are supposed to characterize periods of weak growth and high unemployment?

The U.S. Dollar Index, which measures the US against six major currencies, ended the day down 0.10 , falling to 96.479 at the closing session.

Hamper the setting of prices through the free play of the market by artificially encouraging their rise or fall.

As for the stock market widely viewed as a kind of casino for a small fraction of Chinese households only about 6 of China s population own shares. The Shanghai stock market index soared from 2,200 a year ago to a peak of 5,100 in mid summer and then dropped sharply, to about 3,000 now.

The Supreme Council studied the situation in the oil market and the effects of the fall in prices on the economies of member States.

Yet the Chinese government has remained committed to intervention, responding to the correction with heavy handed, politically motivated measures, including the complete suspension of trade of many companies stocks. The move seemed to have halted the further deterioration of the Shanghai stock market.

The market's dropped. We need 50,000 francs.

Salaries had slumped and unemployment had risen to over 40 per cent.

(2) Where a securities firm offers investment suggestions to its client, making certainty judgment on highs and lows of security prices or market trends

As for the United States, plummeting gas prices an extraordinary 25 decline in roughly one month have increased consumer confidence and spending at a time when consumers were supposed to be in full retreat because of the housing market decline. Moreover, former Federal Reserve Chairman Alan Greenspan says the housing market correction is already almost over.

As the authorities in major markets of Bitcoin such as China, South Korea and the European Union take decisive regulatory measures, the digital currency market dominated by Bitcoin has experienced major bloodshed this week. The price of Bitcoin has fallen below 10,000 dollar, recording the biggest one day drop.

MONTEVIDEO Central bankers continue to fret about frothy asset markets as well they should, given the financial crisis of 2008 2009. Having been burned once, they are now doubly shy.

The buyer had accepted the price previously stated by the supplier but had requested its reduction in accordance with the drop in prices on the market.

The declining importance of primary commodities in world trade, combined with the loss of market share in world primary commodity markets suffered by those countries, puts them in a weak position to benefit from globalization.

The slump in demand is coming at a time when Russia is desperate for hard currency, owing to sanctions that exclude it from credit markets. Its major companies are facing huge debt refinancing needs, its currency reserves are collapsing, its economy is heading toward a deep recession, and the ruble is plumbing new lows.

It was extremely important to be selective in making investments but also not to overreact when markets fell, as it was often difficult to judge the right moment to re enter markets to benefit from the ensuing recovery in share prices.

In its acceptance of the order, the seller had replied that the prices could be adjusted upwards or downwards, as agreed, in accordance with the market, but that various specific items could not be delivered.

China s efforts at market manipulation are no less blatant. In response to a 31 plunge in the CSI 300 (a composite index of shares on the Shanghai and Shenzhen exchanges) from its June 12 peak, following a 145 surge in the preceding 12 months, Chinese regulators have moved aggressively to contain the damage.

But images of the 1987 crash, driven by computers in tall modern steel and glass office buildings, do seem to be on people s minds today. The stock market suffered one of its biggest one day drops this year on the 20th anniversary of the 1987 crash, with the S amp P 500 falling 2.56 .

But images of the 1987 crash, driven by computers in tall modern steel and glass office buildings, do seem to be on people s minds today. The stock market suffered one of its biggest one day drops this year on the 20th anniversary of the 1987 crash, with the S P 500 falling 2.56 .

BAM Bakaraaha Arms Market

Recent episodes of financial market turbulence had shown that a country could lose its credit worthiness overnight.

Indeed, the Wall Street Journal ran a story about it on the morning of the 1987 crash. I know that those images contributed to the severity of the 1987 crash by encouraging people to sell, because I ran a survey of individual and institutional investors the following week.

In the 1990s, free market principles had been applied only to markets in products and capital, leaving out the unskilled labour market.