World Markets Plunge on Fears of Global Economic Cooling
StockWatch
- April 2007
A day earlier, former Fed chief Alan Greenspan said that the economy may be on
its way to a recession. Correction had been the word whispered on Wall Street
because of the robust run up in stocks. “Corrections usually happen because of
a catalyst, and this may be it,” said Ed Peters, chief investment officer at
PanAgora Asset Management. “The move in China was a surprise, and when a major
market has a shock it ripples through the rest of the market. With all the
trade that goes on with China, there tends to be a knee-jerk reaction with that
kind of drop.”