Financial Meltdown – In Only 6 Days, Stock Markets Lost $6 Trillion & Plunge Into Correction Territory

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Feb 28 2020
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After Thursday (Feb 27) closing bell, the Dow Jones lost a jaw-dropping 1,190.9 points – the biggest in history. It was also the second day in the same week the index shed more than 1,000 points. On Monday, it had already plunged 1,031 points, before losing 879 points again the next day. Thursday also saw global financial markets plunged for the sixth consecutive day,


If you had no idea what that means, here’s how massive the losses in dollars. On Thursday alone, the U.S. stock markets lost a staggering US$1.33 trillion. The global stock markets, on the other hand, saw US$1.83 trillion wiped out. Still not scary enough? Over the last 6 days of financial meltdown, a whopping US$6 trillion evaporated globally with U.S. markets alone losing US$4 trillion.


If you think Friday opening bell will be any different, think again. The U.S. stock futures indicated more losses, ranging from 500 to 200 points lower. The Covid-19 virus has no plan to go away. The huge drop on Thursday came after California Governor Gavin Newsom said the state is monitoring 8,400 people for the infectious coronavirus.

Dow Jones Closes Down 1000 Points

The bad news certainly didn’t help the financial market, not after the CDC (Centers for Disease Control and Prevention) confirmed on Wednesday evening of the first U.S. coronavirus case of unknown origin in Northern California – suggesting the possible “community spread” of the disease in America.


Essentially, there have been 27 market corrections since World War II, with an average decline of 13.7%. Thanks to coronavirus, the S&P 500’s drop of 10% decline is the quickest in the index’s history. In fact, the speed of the decline over the 6 days beats even  he Black Monday plunge in October 1987, the day stockbrokers around the world stared in disbelief as financial market meltdown began.


The impact of the virus on the U.S. financial markets, which initially had been rubbished by President Donald Trump, is so serious that the Commander-in-Chief had to go through a press conference on Wednesday just to convince the public. Trump has put Vice President Mike Pence in charge of the US government response to the crisis, amid growing criticism of the White House’s handling of the outbreak.

Coronavirus - Donald Trump Wears Mask

It was only a day earlier on Tuesday that Trump was reportedly very upset – and furious – over a warning issued by Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, who said that the coronavirus is “likely’ to continue to spread throughout the entire United States. Trump disagreed with the CDC’s assessment because it spooked stock markets.


The U.S. President told CNN Chief Medical Correspondent Dr. Sanjay Gupta at the briefing that he’s not worried about the spread of the virus in the United States. Downplaying the impact, Trump said – “No, we’re not worried because we’re ready for it. It is what it is. We’re ready for it. We’re really prepared. We have, as I said, we have the greatest people in the world. We’re very ready for it.”


Heck, the president even blamed it on Tuesday night’s Democratic debate in South Carolina as one of the reasons for the stock market plunge. Trump’s son-in-law, Jared Kushner, was reportedly encouraged him to downplay the novel coronavirus’ effects because to tell the truth could cause further panic in the stock markets.

Coronavirus - China Disease Surveillance System

Even though the number is suspicious, the number of new cases in China appears to have stabilised. However, the number of confirmed coronavirus cases outside of China has jumped. On Friday, South Korea reported 571 new Covid-19 cases – the highest in the world outside China – to bring the total of cases to 2,337. The number of cases has gone up to 650 in Italy, with 17 deaths.


Concerns over the coronavirus epidemic have led companies to issue earnings and revenue warnings. On Wednesday, Microsoft warned that one of its key divisions may not meet the company’s previous revenue guidance, as did PayPal on Thursday. Apple had earlier said its revenue for March quarter would be lower than its guidance. It’s upcoming low-cost iPhone may be delayed.


About 40% of big companies revealed that the outbreak has caused a major decrease in demand from China. David Kostin, Goldman Sachs’ chief U.S. equity strategist, went as far as saying that U.S. companies will see zero earnings growth this year. He said – “US companies will generate no earnings growth in 2020,”

According to Moody’s Analytics, the rate of new coronavirus cases registered outside of China has been so alarming that the odds of the outbreak turning into a pandemic have now doubled – from 20% to 40%. A pandemic is defined by the World Health Organization (WHO) as “the worldwide spread of a new disease.” A pandemic will result in global and U.S. recessions during the first half of this year.


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Just the kind of news to herald the coming of the whatever gomen that would rule and continue to destroy our country.

Malaysia only has the worst garbage politicians utter stupidity and money can get.

Still, whatever kind of garbage we are going to be gifted, we should hope they won’t get the Turd Coming of the Snake Pharaoh – hopefully not even in a ridiculous tokong position of a “Minister Mentor”- in which he wouldn’t stop blabbering his plentiful bullock sh*t…

So I say good riddance to bad rubbish.

Which is not to say the rest of our garbage politicians are any good rubbish…

The coronavirus or market collapse may or may not hit us bad. (*Wishful thinking *)

Regardless, we have our garbage politicians with all the talent to destroy our economy etc etc in countless ways.

Be sure to wear your masks, goggles, dispose of your gloves, and wash your hands thoroughly when you touch any of our politicians with a long pole.

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