bloody red

Past two days have been extremely happening. Were you one of the people laughing over your Indian stocks? Were you one of those who thought Indian emerging market is going through a all-happy phase? I am sure you would have heard of the casualties of stock market plunge in India. It is a lesson for those who thought that Uncle Sam is in trouble alone. Whatever is happening is an after effect of the tumult that first engulfed US but given the hold of America all over the world, it is bound to spill over to everyone. Ye to wahi baat ho gayi ki 'hum to doobenge sanam, tumko bhi saath leke doobenge'!

I do not predict long term or short term status of stocks but it is pretty much sure that the cash liquidity void created in US is going to affect all the dependent and linked economies such as India and others in Asia. Foreign investors are pulling on their profits and why not, if Fed is not doing anything, they finally need the cash from somewhere. Now, even Bernanke has started to panic. I was quite surprised reading the news about the rate slashes today morning. To take such a step on a long weekend indicates that Fed is now badly scared too. Such a rate cut few weeks back would have helped but the situation is gone past revival now. Besides Apple stocks after-market plunge is not going to be good for the tech stocks tommorrow. I just wonder where is the trough of this recession wave.