Tag: BRICs

The day after ‘Brown Monday’

After a chaotic weekend, Lehman filed for bankruptcy and Merrill sold itself to Bank of America. The Dow Jones Industrial Average plunged 504 points on the news (and roughly 20% of that loss occurred in the last hour or so of trading). It will forever be referred to here as “Brown Monday”. And the news is still coming.

Today we find…


UPDATE: Almost forgot…folks are wondering whether Blackberry subscriptions will take a hit now that Wall Street has been bludgeoned. Maybe those Blackberry addicts will go back to loving their spouses?

BRIC throwing should be an Olympic event

The market news piece of the day is that the S&P 500 has (YTD) outperformed the once explosive BRICs (Brazil, Russia, India and China). Folks everywhere are saying “See, it’s not so bad” and touting the fact that the U.S. is the “least loser” etc. etc. I don’t think that is the real story here.

As the Washington Post notes, the Olympics may be fantastically well choreographed, but it doesn’t really matter if nobody shows up:

Two weeks after announcing they had sold every one of the record 6.8 million tickets offered for the Games, Olympics officials expressed dismay at the large numbers of empty seats at nearly every event and the lack of pedestrian traffic throughout the park, the 2,800-acre centerpiece of the competition.

The Chinese organizing contingent is “baffled” by this? They’ve got to be kidding – look at their stock market…

Chart compliments of Bloomberg

Just a few months ago, the Chinese were trying to stem the bleeding by promoting more equity market speculation. From the looks of the chart, that didn’t get them very far.

Clue: When equity markets tumble, people lose money. When they lose money, they stay in. And (I guess) order Chinese food.