Chaos everywhere!

The world markets have been in a chaos ever since S&P downgraded the U.S to AA+. Fears of a double dip recession have been renewed. The downgrade might be questionable but its impact has been significant as we have been seeing over the last few days. Massive selling by investors who are fearing of a recession. Its a world where the pessimist's rule. Good news is hard to come by. Every day is throwing up some more bad news.

As I am writing this blog major U.S indices are reeling in the red. Recent news of bad health of the French banking sector send huge shock-waves among the U.S markets. The worry was about the French banking sectors huge exposure to shaky European Debt. Major French banks Societe Generale and BNP Paribas witnessed huge falls on French bourses. Bank of America also saw a big fall of almost 11 percent. A day before the U.S markets had seen a sharp recovery after the Fed announced that it would keep the interest rates at near zero levels for the coming two years to aid economic recovery. This cheer however was short lived as the markets tanked again the next day.

A Reuters survey revealed that 73% of Americans feel that their country is on the wrong track and that they are headed for another recession. This survey clearly highlights the pessimism that has gripped the world. The global economy was already troubled by the Euro zone problems and now the U.S debt issue has added to the already worse situation. The way things are moving ahead in the Euro zone and in U.S. it seems that some very painful days await us in the near term. Seems like I too have caught on the pessimism!