Asian Markets again down !!!!

The downward direction seen in the markets all over the world is not a surprise at all. This was going to happen at some point. The sole cause for this is uncertainity about the U.S. economy, it is slowing down and it is effecting lots of markets , and Asian market to be precise.The U.S. Housing Loan problem is expected to even effect the U.K. economy.

As seen today, the markets saw a drop in the MSCI Asia Pacific Index lost 1.4 percent to 141.33 at 7:04 p.m. in Tokyo, reversing an earlier gain of 0.8 percent. The benchmark is set for its worst month since September 2001. South Korea's Kospi Index fell 3 percent, the region's biggest decline.Even Japanese Nikkei 225 Stock Average dropped 1 percent to 13,345.03. Hong Kong's Hang Seng Index slumped 2.6 percent. All other Asian benchmarks retreated apart from the Philippines, Thailand and Vietnam. Indonesia was little changed.

As quoted by Peter Hames, who manages $30 billion at Aberdeen Asset Management Ltd. in Singapore ``The U.S. economy is slowing down and to what extent is that affecting Asia? Investors hate uncertainty and hence volatility in markets.''

The only solution that I see now is that Banks must try to recover from the huge losses faced due to subprime mortgages, they need to be very very careful in the future in lending loans to shipping and charter companies and also other companies and individuals. This was the root cause for the on going problem, when banks started lending ,they did not see if they were capable to repay the loan amount or not , banks only concern was to rake in more profits then and build a huge customer base, when companies or individuals were unable to pay the loan back that is when the U.S. Housing loan brought a very bitter news to everyone around.

I think this is a very bitter truth to learn from , other countries need to have stricter policies on lending loan amounts. Only this could prevent other countries being effected from this. Just hope this does not effect the markets so much.