August 2015 – FINANCIAL – A former adviser to Gordon Brown has urged people to stock up on canned goods and bottled water as stock markets around the world slide. Damian McBride appeared to suggest that the stock market dip could lead to civil disorder or other situations where it would be unreasonable for someone to leave the house. “Advice on the looming crash, No.1: get hard cash in a safe place now; don’t assume banks & cash points will be open, or bank cards will work,” he tweeted. “Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.
“Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.” Mr. McBride credited his former boss Gordon Brown with preventing a cataclysm by nationalizing the banking system during the 2008 crash. “We were close enough in 2008 (if the bank bailout hadn’t worked),” he said. “And what’s coming is on 20 times that scale.” Financial markets are unstable and periodically suffer crises which can have devastating consequences for the wider economy.
Index, China’s most important stock market index, was down 8.45 per cent, erasing a year’s gains in a day’s trading. The FTSE100 fell 4.5 per cent, hoping £60bn off the price of UK shares, and the Dow Jones in the US fell by over a thousand points in its first minute of trading. Some analysts have suggested that the stock market slide could be the start of a new global financial crisis. Mr McBride’s suggestions about stocking up on canned goods, setting rally points and stocking up on bottled water were ridiculed by some users on Twitter as over the top, however. Mr McBride was special adviser to Gordon Brown and head of communications at the Treasury for a period during the last Labour government. –Independent
Dow plunges more than 1,000 point in early trading
Stocks plunged Monday as the market downturn showed no signs of letting up with the Dow tumbling as much as 1,089 points in the opening minutes of trading. Sharp early losses were pared in later morning trading but stocks were still down substantially. The Standard & Poor’s 500 index plunged as much as 100 points as it dipped into correction territory before cutting its losses to about 50 points, or a drop of 2.5%. The Dow was down about 350 points, or 2.1% and the Nasdaq composite index dropped 100 points, or 2.1% after being down as much as 5% earlier. Market anxiety is on the rise after a big sell-off in China overnight, where the Shanghai composite index shed 8.5%, its biggest one-day decline since 2007 — and Chinese media were dubbing the selloff “Black Monday.” The global stock rout then moved to Europe where major indexes there are off roughly 5%.
“Bad break,” is the way Edward Yardeni, chief investment strategist at Yardeni Research, described the global tumult in stock markets around the globe. “It’s a really cruel summer,” Savita Subramanian, equity and quant strategist at Bank of America Merrill Lynch told clients in a report before the opening bell. “Call it derisking, a flight to quality, a momentum meltdown, or the first signs of a global recession,” but the fact is the past week saw the first pullback of greater than 5% since last October and the worst week since September 2011, she added. –USA Today