World stock markets falling

[Hobbit]

The central banks are injecting more funds ( billions of $s ) into the banking system to ease credit concerns. I believe that this dowturn is very serious and not a short-term dip... I'm taking serious losses and still willing to sell off a part of my stocks. Better to cut some of my losses then continue to watch them fall. I've kept about 60% in stocks now and sold off 40%.

I also believe that the markets will continue to be highly volatile, meaning some days of large gains followed by huge losses the next day. The markets are going to go up and down as investors would like to believe that everything is fine... only the US subprime issue isn't going away. Amazing how one country's problems can cause the whole world to feel the effects.

[eequals]

I think that with interest rates set to fall in the US and possibly stall for the time being in the UK and the rest of Europe, stocks and shares could be a very attractive medium term bet.

The present credit crisis does not mean that shedloads of cash have vanished without trace, just that anything to do with mortgages and leveraged buyouts is off the Christmas card list at the moment.

It has to go somewhere.

Joe

[brolene]

The problem with Sub Prime Mortgages is not only a USA problem but has happened in the U.K. and probably throughout europe.
My son provides mortgages and he informed me months ago that even a Bankrupt could get a mortgage without any credit checks and that it was easier to get a mortgage than a mobile phone. He works for a large estate agency and most of the banks were offering credit and low rates even for Bankrupts.
I was around in the 1980's and 1990's and have seen it before and I believe that this problem is MUCH MORE SERIOUS.I think that some of these GREADY INCOMPETENT Banks are in serious trouble. In the 1980's and 1990's I never heard of the central banks lending billions of pounds/euro's or dollars to banks.
The banks themselves know what they have been up to and are frightened to say but that is why they will not lend to each other.
Shares might be a better bet than having your money in some bank that folds and although we are told that British Banks are safe they are not and neither is the depositor. The USA has a much better system when a Bank folds than we do.I remember the BCCI and if it was not for Zayed the ruler of Abu Dhabi paying out most of the customers would have got next to nothing.
Buy GOLD or something. We are in for a rough time.