Can the world stock slump affect us, as consumers?

pyro · 28 Feb 2007 at 13:47

World stock slump hits second day

The markets were surprised by the speed and size of recent declines
Worldwide share prices have continued to fall, triggered by Tuesday's 9% losses on the Shanghai stock market.
The UK's FTSE 100 index fell 1.2% by midday trading. That took declines in the past two sessions to 3.4% and knocked £55bn off its total value.

France's Cac 40 index dropped by 1.1% and Germany's Dax lost 1%. Earlier, markets in Asia, Australia and India had all suffered substantial losses.

Investors are questioning the outlook for economic and earnings growth.

The current global stock sell-off was fuelled by speculation that China's government would try to clamp down on illegal share trading and might impose a capital gains tax on stock market earnings.

http://news.bbc.co.uk/1/hi/business/6402915.stm

As consumers, could this in any way affect us? I don't know how the stock markets work -well, besides the basic idea. Could this result in higher or lower prices on the products of the affected companies?

Rotty · 28 Feb 2007 at 13:48

It was a one day ( up to ) 3% loss, nothing in the big scheme of things

Shackley · 28 Feb 2007 at 13:54

pyro said:
http://news.bbc.co.uk/1/hi/business/6402915.stm

As consumers, could this in any way affect us? I don't know how the stock markets work -well, besides the basic idea. Could this result in higher or lower prices on the products of the affected companies?

No, absolutely not.

The general public are entirely immune from the consequences of a stock market crash. Research the 1920s & '30s - the only people who lost money were complete bankers

midgetski · 28 Feb 2007 at 13:55

"The general public are entirely immune from the consequences of a stock market crash"

unless you have savings, or a pension.. or a job.

dbailey10 · 28 Feb 2007 at 14:13

midgetski said:
"The general public are entirely immune from the consequences of a stock market crash"

unless you have savings, or a pension.. or a job.

seconded.

No offence but "The general public are entirely immune from the consequences of a stock market crash" must be one of the most incorrect statements i've seen on here in a while!

dirtydog · 28 Feb 2007 at 14:14

No but I'm glad I don't have a stock market tracker investment

Shackley · 28 Feb 2007 at 14:15

dbailey10 said:
No offence but "The general public are entirely immune from the consequences of a stock market crash" must be one of the most incorrect statements i've seen on here in a while!

None taken - "complete bankers" wasn't meant to be taken entirely literally either

dirtydog · 28 Feb 2007 at 14:17

Shackley said:
None taken - "complete bankers" wasn't meant to be taken entirely literally either

dbailey10 · 28 Feb 2007 at 14:21

Shackley said:
None taken - "complete bankers" wasn't meant to be taken entirely literally either

lol

Arcade Fire · 28 Feb 2007 at 16:11

Shackley said:
The general public are entirely immune from the consequences of a stock market crash. Research the 1920s & '30s - the only people who lost money were complete bankers

What the..?

You do realise what happened in the early 1930s, right? Incomes diving across the board, massive unemployment and homelessness, large-scale migration out of the worst affected areas (esp. in America) and a general malaise that allowed extremist governments to come to power?

I have rarely seen anyone be more utterly misinformed.

badgermonkey · 28 Feb 2007 at 16:13

Arcade Fire said:
What the..?

You do realise what happened in the early 1930s, right? Incomes diving across the board, massive unemployment and homelessness, large-scale migration out of the worst affected areas (esp. in America) and a general malaise that allowed extremist governments to come to power?

I have rarely seen anyone be more utterly misinformed.

You do realise that post was not serious? :rolleyes:

EDIT: At least I hope not...

Dave M · 28 Feb 2007 at 16:15

Where is the irony smiley??

badgermonkey · 28 Feb 2007 at 16:17

Telescopi said:
Where is the irony smiley??

I just tried to find one of someone ironing... alas to no avail

Dave M · 28 Feb 2007 at 16:22

hotlinking is bad, but

dbailey10 · 28 Feb 2007 at 16:24

lol, classic!

Shackley · 28 Feb 2007 at 16:46

Arcade Fire (of Cambridge) said:
What the..?

You do realise what happened in the early 1930s, right? Incomes diving across the board, massive unemployment and homelessness, large-scale migration out of the worst affected areas (esp. in America) and a general malaise that allowed extremist governments to come to power?

Yes, I do.

Do, please, please tell me that you aren't a student at the second most prestigious University in the World - please . . .

Arcade Fire · 28 Feb 2007 at 16:47

badgermonkey said:
You do realise that post was not serious?

Apparently not. :rolleyes:

Shackley said:
Do, please, please tell me that you aren't a student at the second most prestigious University in the World - please . . .

No, we're number 1. I must have missed the classes on spotting obscure jokes on the internet though.

daz · 28 Feb 2007 at 16:52

Amazing the number of people unable to grasp the concept of sarcasm.

Anyways, back on topic...

I wonder what the bank of england will do with interest rates now...

Shackley · 28 Feb 2007 at 17:16

daz said:
I wonder what the bank of England will do with interest rates now...

Dow Jones and Nasdaq are on the way up for the day, so probably nothing - as a direct result of this particular 'blip' anyhow - other factors may result in a rise -or- not, we shall have to see BBC Link.

robmiller · 28 Feb 2007 at 17:18

Arcade Fire said:
Apparently not.
No, we're number 1. I must have missed the classes on spotting obscure jokes on the internet though.

To be fair it was probably the most obvious sarcasm I've ever seen in my entire life