Wagoner's Ouster Causes Asian Stock Crash
On hearing that Rick Wagoner is outta here, Asia-Pacific shares nosedived on Monday, which wiped out most of the gains they had made last week. It’s not that anyone is missing Red Ink Rick. Traders at the Asian exchanges see the departure as a sign that “the US government might allow one of the world’s biggest car makers, General Motors, to go bust,” writes the Financial Times [sub].
As Wagoner’s defenestration hit the wires, the Nikkei in Japan dropped 4.5 percent to record its worst day for two and a half months. Hong Kong’s Hang Seng lost 4.7 percent—its biggest fall in three weeks. Taiwan shares were down 3.4 percent and in South Korea the market dropped 3.2 percent.
A person close to General Motors told the Financial Times said that the resignation of Rick Wagoner at the weekend made it likely the company would file for bankruptcy protection sometime in the next few weeks.
SINGAPORE (Dow Jones)--Asian markets tumbled Monday as risk-averse investors dumped equities on reports the Obama administration has forced the departure of General Motors Corp.'s chief executive and suggested a "quick and surgical" bankruptcy for struggling U.S. car makers.
"the US government might allow one of the world’s biggest car makers, General Motors, to go bust" That should read, "the US government might publicly admit that one of the world's biggest car makers, General Motors, has gone broke."
Yah, I agree with don1967, what we really need is a triple-digit percentage decline, then we can call it a crash. /sarcasm