Markets across the world slumped Thursday – just days after a sharp rally in response to the US presidential election. The Emerginvest heat map is awash with red as markets tumbled for the second day. The UK’s FTSE 100 was down 5.7% today, along with Germany’s DAX down 6.8%, France’s CAC40 down 6.3%, and Russia’s MICEX down 9.6%.
Tomorrow, President-elect Obama will meet with economic advisors as how best to face the oncoming crisis.
According to a Marketwatch article entitled: “Obama will make economic mark before Jan. 20”, his economic advisors include: “Warren Buffett, former Federal Reserve Vice Chairman Roger Ferguson, former Treasury Secretary Robert Rubin and former Securities and Exchange Commission Chairman William Donaldson… Treasury Secretary Lawrence Summers, former Federal Reserve Chairman Paul Volcker and Google Inc., Chief Executive Eric Schmidt, according to a report in the online edition of The Wall Street Journal.”
As the only president-elect to be a sitting senator since Kennedy (along with his running mate senator Biden), he will have the opportunity to wield great influence on the upcoming economic policy. This is at a time when democratic legislators proposed an additional $100 billion stimulus package in the form of a tax cut.
The Marketwatch article further states that: “Obama’s team may also have some input on shaping the execution of the plan to buy up bad assets from financial institutions.”
In addition, the upcoming November 14-15 global economic summit looms large in the wake of the US presidential election. It is unclear what role, if any, Obama will play in the soon-approaching summit as world leaders convene, and what subsequent effect it will have on world markets.
One thing is certain: Obama will face a tremendous challenge with one of the worst global recessions upon entering office.
The U.S.’s performance over the last quarter:
Tomorrow, President-elect Obama will meet with economic advisors as how best to face the oncoming crisis.
According to a Marketwatch article entitled: “Obama will make economic mark before Jan. 20”, his economic advisors include: “Warren Buffett, former Federal Reserve Vice Chairman Roger Ferguson, former Treasury Secretary Robert Rubin and former Securities and Exchange Commission Chairman William Donaldson… Treasury Secretary Lawrence Summers, former Federal Reserve Chairman Paul Volcker and Google Inc., Chief Executive Eric Schmidt, according to a report in the online edition of The Wall Street Journal.”
As the only president-elect to be a sitting senator since Kennedy (along with his running mate senator Biden), he will have the opportunity to wield great influence on the upcoming economic policy. This is at a time when democratic legislators proposed an additional $100 billion stimulus package in the form of a tax cut.
The Marketwatch article further states that: “Obama’s team may also have some input on shaping the execution of the plan to buy up bad assets from financial institutions.”
In addition, the upcoming November 14-15 global economic summit looms large in the wake of the US presidential election. It is unclear what role, if any, Obama will play in the soon-approaching summit as world leaders convene, and what subsequent effect it will have on world markets.
One thing is certain: Obama will face a tremendous challenge with one of the worst global recessions upon entering office.
The U.S.’s performance over the last quarter:
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