Indian Sensex down more than 10 percent (1700 points) .. Markets have hit 10% lower circuit in the opening trades. Markets will remain closed for an hour and will resume trading at 10:55 am (IST)

What u think ?? will American economy in to the recession ???

Asian markets were trading weak. Hong Kong's Hang Seng tumbled 5.36 per cent or 1276.86 points at 22,542. Japan's Nikkei plunged 4.41 per cent or 587.63 points at 12,738.31. Taiwan's Taiwan Weighted slipped 5.82 per cent or 472.13 points at 7,638.07. Singapore's Straits Times fell 3.5 per cent or 102.11 points at 2,815.04. South Korea's Seoul Composite was down 3.65 per cent or 61.48 points at 1,622.08.

Global markets, too, have crashed across the board on Tuesday morning with all the Asiam markets registering a huge fall.

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The biggest drop was in Hong Kong where the Hang Seng was down nearly seven per cent followed by Singapore's Straits, Taiwan and Shanghai in China down four per cent.

Other emerging markets have also dropped sharply. Although US markets were closed on Monday, 35 countries including France and Italy have entered the bear phase, which means a drop of 20 per cent from their highs. The Russia stock exchange was down 7.5 per cent.

The Fed will lower the interest rates so that investors can start investing again. Bush has planned a tax cut worth 145 billion dollars, but the effect of tax cuts do not seem to stimulate the economy with immediate impact. Lowering interest rates would probably be the way to go right now.

20 % drop in DJIA, S&P 500 and Nasdaq 100 is in the offing when the market opens in US in few hours time. So better hold your breath and prepare for the wildest ride of your life if you are invested. I wish all the investors in sajha a safe landing without any bump from this ride. Please don't forget to put on your helmet or else you will hit your head somewhere so hard you will likely forget your name with the concussion. good luck.

Transport fares hiked by 25 percent

KATHMANDU , Jan 22
A day after the government massively hiked the price of diesel and LP gas transport entrepreneurs have decided to hike the fare of both short and long route public transportation by 25 percent effective from Wednesday.
The Federation of National Transport Entrepreneurs of >>> read more... www.kantipuronline.com

After Citi Bank now Its Time for Bank of America and Wachovia .There 4Q profit falls sharply.
couple of days ago i started this thread on recession but i am realizing .Lets wait and watch policy.It is not that bad as it seems to be There are ways to pull this economy back.But can Stupid Bush and his idiots do it.


Fed Cuts Interest Rate
Tuesday January 22, 8:31 am ET
By Martin Crutsinger, AP Economics Writer Fed Cuts Interest Rate Amid Global Stock Sell-Off and Fears of Recession WASHINGTON (AP) -- The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday, the biggest one-day move by the central bank in recent memory.

The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent.

The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory.

The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.

In a brief statement, the Fed said it had decided to cut the federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth."