Itís 2003 all over again
The last time the bloodbath in the markets was caused by events in the United States when terrorists sought to bring the most powerful nation in the world to its knees. That time the destruction was caused by foreigners who wanted to harm the US but ended up doing far more. This time it was US citizens who recklessly sold out their nation and most of the world to make money for their companies and for themselves. But what is similar is that both the carnages were man-made.
After September 11, economies in much of the advanced world were in shambles as business confidence was severely shaken. Today much the same has happened, but on a much larger scale. Manufacturing and services were critically affected then: remember the drop in oil prices and vacancies in airlines and hotels. That scenario is repeating itself. Banks, of course, are facing the brunt. But as after September 11, there is a meltdown in commodities, and sectors such as auto, airlines and hospitality are also under pressure. Only this time round the magnitude of the problem is much bigger.
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