The Dow Jones dropped 777 points, the largest point drop in history, plunging dramatically after the House failed to pass bailout for the nation’s financial system.
According to Bloomberg News, stocks lost $1.1 trillion in value, meaning the market loss was larger than the size of the $700 billion bailout.
Black monday ? Black october ? Black year ? It’s an understatement.
What is happening is not a surprise for the people who used their brain and a little bit of common sense (Mish, Roubini, everything was forecasted since… 2 years you don’t believe me ? Read their blogs, check with Google).
So no excuse. All the people who are loosing their shirt now… can blame… only themselves.
The thai authorities are of course totally off the track.
First, like all the others, denial. After the Lehman’s debacle they were saying “it’s going to be okay”, there won’t be a new financial crisis.
I wrote 3 days ago : “Why the BOT doesn’t understand the current situation and why it’s scary”.
With a very simple argument : Thailand can’t escape a slowdown (at best) of growth, when like dominos, all its biggest exports customers are already or are going to be in recession !
It’s so easy to understand. But, no, denial is easier.
It’s better to secure some juicy ministers, to take a maximum of cash before the temple goes down, better to play little childish games, better to name a cop as Industry Minister, better to excite people with “lese-majeste” and other absurd lawsuits, better to show to the entire world the insufferable thai arrogance.
So after this striking black monday… is the government going to acknowledge and understand the gravity of the situation ?
Disclamer : don’t get me wrong… I speak about Thailand because… well… obviously it’s what this blog is about . But virtually all the countries, and all the authorities in the world have played exactly the same game (stupid dishonest denial for some and stupid honest denial for others ).
ThaiCrisis ? My blog’s title is now a freaking understatement. Damned. What about “World Crisis” ? Sounds better, no ?