There is only one economy by Barbora Misakova

The world is big, number of states is colossal but the economy is the only one. These days we can be witnesses of it and we are realizing this truth. America and its economy sustained measurable deprivation which was caused by the situation on the Wall Street when the prices of shares just slumped. If we thought this won't touch us, we were wrong. Doesn't really matter where the economy regression started, it will sooner or later reach us too. It is just a question of time. The first signs of the influence from American shores are already seen. The last week's market declines of shares' prices stroke not only Asia but also Europe. The stocks in the whole Asia are recording the biggest percentage drops since terror attacks in 2001. India's stock index and Hong Kong's Hang Seng index just tumbled. Japan's Nikkei index slid 3.9 percent, Toyota Motor Corp. and Honda Motor Co. lost more than 3 percent. One of the biggest Asian percentage drops ever was Sensex index which sank 7.4 percent. Even though people are nervous about situation in the U.S. there are still some analysts predicting no dramatic suffer to Asia. The main argument is that Asia is nowadays less reliant on the United States than it was in the past, and almost 50 percent of Asian exports go to other nations. Situation on Wall Street don't give a sleep to European stocks neither. The biggest European stocks & in London, Frankfurt and Paris have losses of more than five percent and the nervousness is in the every economic markets round the world. In spite of efforts of American President George W. Bush to stabilize economic situation in the country by reducing taxes many of analysts reckon this effort for useless and think the crash of U.S. economy is irreversible. What will it have influence on the rest of the world will we see soon. Let's hope that optimistic analysts will be right this time.

related story: http://news.yahoo.com/s/ap/20080121/ap_on_bi_ge/world_markets;_ylt=Aldz830TuJzfQCPZQIJdt1.s0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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