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Generational Dynamics Web Log for 8-Feb-2011
8-Feb-11 News -- Bangladesh riots over stock market crash and food inflation

Web Log - February, 2011

8-Feb-11 News -- Bangladesh riots over stock market crash and food inflation

Japan furious over Russian president Medvedev's visit to disputed islands

Bangladesh riots over stock market crash and food inflation

Dhaka Stock Exchange - to January 26 and February 7, 2011

Dhaka Stock Exchange - to January 26 and February 7, 2011

The headline in the Daily Star (Dhaka) reads: "Stock investors go berserk again."

The headline alludes to the previous time when investors went "berserk" -- see "21-Jan-11 News -- Bangladesh stock market crashes 9% in 5 minutes."

According to the story:

"A steep fall in share prices sent hundreds of investors out on the street in Motijheel to protest the plunge yesterday, with many taking to vandalism for the second day. They vowed to continue their demonstration until the market bounces back.
The General Index (DGEN) of Dhaka Stock Exchange came down to 6,394 points, registering a 324 points or 4.8 percent fall at the end of a four-hour trading session yesterday.
With yesterday's fall, the market remained in the red for a third trading session, marking a cumulative drop of 915 points. ...
Although the investors started gathering in front of the premier bourse from the opening bell of the trading session, the demonstration began at around 1:30pm after the DGEN plunged over 300 points.
The aggrieved investors set fire to paper and wood, burnt an effigy of the finance minister, and chanted slogans demanding resignations of the finance minister, central bank governor, market regulator's chairman and presidents of two bourses.
They also smashed up a bus and a pickup van in the area and broke windowpanes of some buildings adjacent to the DSE by throwing brickbats.
"My portfolio has been wiped out by 75 percent. I have invested Tk 20 lakh, but now the value is Tk 5 lakh only," said Mizanur Rahman, a shocked investor who was in tears. "I am losing everything. I don't know what to do.”
Many others were expressing their feelings the same way, most of whose money was lost to the recent slump in share prices.
Stockbrokers said share prices kept declining without any let-up. "Frightened investors started offloading the shares from the opening bell. Sliding confidence of investors prompted huge sell pressure and buyers were inactive in fear of further debacle," a leading stockbroker said in its regular analysis."

The stock market bubble is crashing at exactly the same time that global food prices are skyrocketing. Food prices in Bangladesh have increase 11% in just the 5 weeks since the year began, and they were already at historically high levels.

The stock exchange riots coincided with a nationwide strike called by the main opposition political party, the Bangladesh Nationalist Party (BNP), according to VOA.

BNP has called for nationwide demonstrations again on Wednesday, according to the Daily Star.

Cairo stock exchange remains closed as banks reopen in Egypt

Cairo Stock Exchange - to January 27, 2011

Cairo Stock Exchange - to January 27, 2011

The headline in the the Cairo paper Ahram reads, "Egypt pound hits 6-year low, but market stable."

The headline was referring to the Egyptian companies that are listed on the London stock exchange. It certainly wasn't referring to the Cairo stock exchange, because the Cairo stock exchange was closed after it crashed on January 27. It was supposed to reopen two days ago (on Sunday), but the reopening was postponed until next Sunday -- presumably because officials asked around and couldn't find any investors who wanted to buy stocks.

Banks reopened on a limited basis on Sunday, but some ran out of cash when long lines of depositors withdrew their savings.

'Emerging markets' losing their popularity

The "experts" have really changed their views, haven't they.

Last year, all the experts were saying that emerging markets were "hot," the best place to invest, because American and European markets weren't growing enough. Quantitative easing money poured into emerging markets, creating the stock market bubbles that are now crashing.

Investors are now fleeing emerging markets, according to USA Today.

This means that investors are pulling money out of emerging markets, and putting it -- where? Probably Wall Street stocks, expanding the huge Wall Street bubble even larger.

The Wall Street bubble has grown to truly alarming levels again. The same kind of crash that occurred in Dhaka and Cairo will surely be coming to Wall Street.

Additional links

The Japanese are furious that Russia's President Dmitry Medvedev visited one of the four Russian-held Kuril Islands, which Japan claims are Japanese territory. Russia seized the islands at the end of World War II, and the territorial dispute has prevented the two countries from signing a postwar peace treaty. Japanese Prime Minister Naoto Kan called Medvedev's visit in November an "unforgivable outrage," and Russian Foreign Minister Sergei Lavrov criticized Kan's outburst as "not diplomatic." Mainichi

Crop production in China has fallen sharply, as the worst drought in six decades shows no sign of letting up. Xinhua

The fastest growing demographic at US divinity schools are Boomers. Time

Thai schoolgirl uniforms

Thai schoolgirl uniforms

A poll conducted by a Japanese news web site finds that college girls in Thailand wear the sexiest uniforms in the world. This has resulted in outrage in Thailand, which has the largest organized sex industry in the world. One Thai columnist calls for greater moral teaching to stem the rise of eroticism. "The most practical solution could be to educate and make students appreciate the value of wisdom and good deeds, instead of external beauty, stardom and fame." Asia Sentinel

(Comments: For reader comments, questions and discussion, see the 8-Feb-11 News -- Bangladesh riots over stock market crash and food inflation thread of the Generational Dynamics forum. Comments may be posted anonymously.) (8-Feb-2011) Permanent Link
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