The second wave of the financial crisis coming?

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Superposition of old and new self-pessimism led to market panic.
The so-called new pessimism, mainly due to the recent economic situation in Eastern Europe in an emergency, but the risks facing banks in Western Europe and renewed it this fear will further deteriorate the situation in Europe to contain the global economy.

The so-called old pessimism, that is baked in the fourth quarter of national economic data shows that the real economy because the country has not only introduced a generous frequent stimulus plan got a boost, but the deeper into recession.

In a crisis, optimism, pessimism is always easier than the spread, and easier to find a market. Last Friday and this week, U.S. stocks for two consecutive days since the crisis hit a new low, many people break the psychological defense of the second wave of the financial crisis has heated up all the discussions. At this point, what we face is how one of the world? Second wave really coming? The dark before dawn will be how long? An interview of Chinese and foreign experts believe that despite the present situation is very grim, but can be characterized as "the second wave of financial crisis," there is still doubt.

How to interpret market panic
New York, the stock market immediately fell last week to 6-year low this week, the first trading day in the absence of any clear case of negative news, U.S. stocks continued to plunge across the board, the Dow and S & P index to 7,114.78 points and 743.33 points close in record since 1997's 12-year low in the manufacturing, energy, science and technology section leading decliners. U.S. stocks plummeted to undertake the trend, the major stock markets across the board Tuesday the Asia-Pacific fell from 1 to 3.24% range; European morning trading in also a poor start, as of press time, the UK FTSE, German and French CAC40 index DAX30 index fell 0.67%, 1.6% and 0.54%.
"Indeed the situation is deteriorating, low stock market accurately reflects the current financial and economic environment." MNI (Market News International) Asia editor John? Carter said the reporter. "But the market may be overreacting, old and new self-stacking lead to pessimism over the market panic." So-called new pessimism, mainly due to the recent economic situation in Eastern Europe in an emergency, but the risks facing banks in Western Europe and renewed, people are anxious about deterioration of the situation in Europe will further contain the global economy. John? Carter that, the domestic need of liquidity, coupled with a lack of confidence in the U.S. economy, the European investors in U.S. stocks might choose to withdrawal of capital; called the old pessimism, it was by the fourth quarter of last year, the unveiling of the economic data, the real economy not only States have not introduced the generous frequent stimulus plan got a boost, but deeper into the recession; In addition, Citigroup, Bank of America and American International Group and other major U.S. financial institutions are also bad news for investors whether the introduction of the Government effective rescue plan doubts.

Bank of China in global financial markets that the Fang Ming, senior analyst, even if the Government took over the financial institutions to some extent, of not going bankrupt, the investors can not resolve concerns about bad loans of financial assets, bad debts will increase and profits fall leading financial institutions, the rate of decline in earnings per share. Same is true of the real economy, the three major U.S. auto industry is facing another crisis of survival, Microsoft, Intel and other corporate performance have fallen sharply, in this context, the stock market is understandable, not simply with the crisis of its short-term performance directly linked to progress . "In terms of the financial crisis, first of all no new landmark event, followed by no more than the so-called 'first wave' more serious consequences, in this case will be now defined as 'the second wave of the crisis' some far-fetched." Fang Ming said.

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