Carrie Reinheimer. November 6th 2008. 4:21pm
The Mexican stock is starting to see a downturn along with a lot of other countries. Mexican stocks fell early on Thursday after steep interest rate cuts in Europe underscored worries that the global economy faces a steep downturn. The benchmark IPC stock index MXX dropped 1.44 percent to 20,154, its second straight day of losses. A shock 1.5-percentage-point cut in UK interest rates and easing in euro zone and Swiss rates added to a number of countries that have slashed borrowing costs around the world to combat the worst financial crisis in 80 years. Stock markets fell globally as investors worried the cuts may have come too late to avert a sharp downturn in Europe's economies, pointing to weaker growth around the world. Increasing signs of a recession in the United States bode poorly for Mexico, which sends around 80 percent of its exports to its northern neighbor. Mexico's central bank is limited in its ability to cut rates to boost growth as inflation remains relatively high and a steep devaluation in the peso during October further amplified pressures on import prices, said Neil Dougall, chief economist for emerging markets at Dresdner Kleinwort in London. In debt trading, the yield on the government's benchmark 10-year peso bond jumped 12 basis points to 9.05 percent.
I feel like now that I am doing these reports it just gets scarier and scarier. Every week stocks are falling and creating a recession is so many countries. It seems like eventually there will not be a single country that is not in recession, except for Dubai. Then what are we going to do. No one is going to have any money and we are all going to die. Ok well maybe not to that extent but it is going to be really bad and it is going to be hard to get out of the recession. Maybe with the new president things will get better for the US but that will not help all of the other countries that are in recession.
http://www.reuters.com/article/marketsNews/idUSN0628605620081106
2 comments:
I agree, I'm really scared too! Sometimes its hard to face the reality that our country (and others) are going through such a difficult time. However at this point I see it all the time as it greatly affects our daily lives. I can only hope that our new president will turn things around for our country.
I think we have to be in recession before our economy can get better. Things have gotten to that point where they will not be fixed overnight and no one person can fix them. Granted, things have gotten worse during the Bush administration, but the economic downfall is not to blame on Bush and like I said in the latter cannot be fixed by one person, including our new president.
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