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Originally Posted by Summerwind  Well the Asian stocks started Monday up a bit, then collapsed again. Tomorrow will be a nail biter, for sure. |
Summerwind,
I don't believe Fannie's and Freddie's woes were weighing on Asian markets as much as they were in the U.S. and, to a lesser extent, Europe. Asia's markets have been declining for some time on account of rapidly rising inflation, high energy prices (which impede production, boost inflation, and erode competitive advantages on account of shipping costs) and growing concern that a sluggish U.S. economy and the ongoing unwinding of the non-oil portion of the U.S. trade deficit will reduce their export growth. Given that some of Asia's fastest growing economies have a strong export-driven component, this is a major concern.