Asian markets tumbled early Tuesday after the U.S. House of Representatives voted down the $700 billion financial bailout package overnight, with shares plunging across the board. The Nikkei 225 Average slumped 4.8% to 11,178.34 and the Topix index skidded 5.1% to 1,070.20. Australia’s S&P/ASX 200 index lost 2.8% to 4,674.50 and New Zealand’s NZX 50 index gave up 4.3% to 3,052.81. South Korea’s Kospi fell 4.9% to 1,385.79.
Japan’s central bank Tuesday injected 2.0 trillion yen (19.2 billion dollars) of emergency funds into the Tokyo money market to try to calm renewed financial turmoil. It was the 10th consecutive business day that the Bank of Japan has pumped cash into the domestic financial system to try to keep credit flowing.
Bush’s lack of presence and leadership on this issue is telling. He had no problem puffing up his chest and standing on top of the rubble of the WTC and talking tough back in 2001. He could pin the responsibility for that horror on someone else.
Fast forward to 2008 — he owns this debacle. He and his deregulation party have been in charge, setting this mess in motion from day one. Since we all know that Bush doesn’t take responsibility for his disasters, what do you think Mr. Lame Duck will say? What should he say? Will it calm the markets or simply set them off on a downward spiral again?