What happens if the bailout doesn't go through - will the UK stock market crash?

jerusalem2006

Some of the papers are reporting that if the 700 billion dollar bail out does not go through then the UK stock exchange could fall by as much as 1000 points on 'black monday'. What does this mean for people who have stocks/shares/funds in the UK market? Are we likely to lose all our money?

I know that a lot of it is media hype but I don't want to risk losing a large chunk of my life savings on Monday.

[Deleted User]

jerusalem2006 wrote: »

Some of the papers are reporting that if the 700 billion dollar bail out does not go through then the UK stock exchange could fall by as much as 1000 points on 'black monday'. What does this mean for people who have stocks/shares/funds in the UK market? Are we likely to lose all our money?

I know that a lot of it is media hype but I don't want to risk losing a large chunk of my life savings on Monday.

Don't worry; the deal WILL go through before Monday, and the markets will rally. Relax.;)

Goldfinger.

TRUSt_NO_1_2

jerusalem2006 wrote: »

Some of the papers are reporting that if the 700 billion dollar bail out does not go through then the UK stock exchange could fall by as much as 1000 points on 'black monday'. What does this mean for people who have stocks/shares/funds in the UK market? Are we likely to lose all our money?

I know that a lot of it is media hype but I don't want to risk losing a large chunk of my life savings on Monday.

What George wants...George gets (and George is told by the real power brokers,the banks,what to do)
The markets are dominated by financial entities,and they will then pump billions into the markets,particularly the financials and other strategic companies eg GM,Ford..and 'secretely' commodities as that is where the real value is, as they will now have a blank cheque to continue speculating.
So the markets will jump up,once congress approves.
The mortgage market will NOT be on their 'shopping' list so the housing market will continue it's decline.
Either way...the man in the street will continue to become poorer at an increasing rate.
Prime mortgages,corporate loans and credit card debt will be the next problem to hit the banks...then more bail outs for the bankers ? .. and more inflation.
It's a downard spiral...unless you're a member of the 'bankers syndicate'.

dunstonh

jerusalem2006 wrote: »

Some of the papers are reporting that if the 700 billion dollar bail out does not go through then the UK stock exchange could fall by as much as 1000 points on 'black monday'. What does this mean for people who have stocks/shares/funds in the UK market? Are we likely to lose all our money?

I know that a lot of it is media hype but I don't want to risk losing a large chunk of my life savings on Monday.

That was pulled from a media article from a fund manager that was published last week in Citywire. 20% drop is certainly possible. However, you would also expect a rebound over a period and probably find 10-15% is the more the net result.

Remember that if this option fails then it will be a case of looking for the next option. If this option turns out to be a fudge then the markets could still react badly. Also you do need to consider that the US Govt are painting a really bad picture to encourage the US public to support the plan. At the moment, a significant amount of the US public are against the deal.

I know that a lot of it is media hype but I don't want to risk losing a large chunk of my life savings on Monday.

Too late for you to do anything about it now.

purch

The Deal will be made....

They will probably add a few 'wrinkles' to keep the doubters onside, but the deal will be made because in the end the US Governement at all levels, and the 'brainwashed' electorate believe it will be a good deal for the U.S. Taxpayer.

amcluesent

IMHO the smart move is to sell heavily into the 'dead cat bounce', as this is the last chance been engineered by the Republicans so they and their cronies can clear the table of assets before the USA spirals into the end-of-empire decline. The only way forward for US/UK is to inflate away the toxic-waste now on the public-sector balance sheet as aged debt, a fall in the exchange rate will also help exporters. Gold heading for $2000, buy Sovereigns as legal tender they are exempt from CGT.

ed123_2

....we will all lose our money, mass unemployment, 30's stlye soup kitchens and we will all stave to death......

iltisman

Complete and utter meltdown may be a good thing in the long run.People who can actually do something,grow food,make tools,construct buildings etc will come into their own whilst the slack jawed giro brigade will starve.
It will be like pressing the re-set button on society.

jamesd

Markets go up, markets go down, over time they go up more than they go down. Relax and enjoy the headlines unless you're close to taking your money out for some other reason, like retirement in the immediate future.

Or notice that the best time to buy is when prices are low and conclude that this year is a good time for regular buying of investments. It's what I've been doing.

angelus

The end of the world is nigh, the end of the world is nigh.....

:j

sabretoothtigger

It wont crash right away but as more banks fail it will only go down.

Last week they were talking about how normal companies (with normal debts) were having trouble raising funds to stay solvent, this is the apocalyptic knock on effect I think they referring to