Riots Erupt In Bangladesh After Stock Market Plunges 6.7%

[Ares]

For what may be the best look at the future of the world's most recent Banana republic entrant (the U.S.S. of A. for the confused) has to look forward to, we need to merely shift our attention at another one, which has had the privilege of experimenting with its Banana status for far longer: Bangladesh. After the stock market plunged on Sunday by 552 points or 6.72%, hundreds of angry investors took to the streets, "threw bricks at police, marched in the streets shouting slogans, and staged a sit-down protest." These very same "investors" which have and always will be better known as momo investors, which chase returns only to end up with the live grenades, "chanted slogans against the government and the regulators, and marched through the busy roads in the Motijheel Commercial area, halting traffic. They also staged a sit-in at the SEC building." The reason for the recent mass hysteria in chasing stocks: pretty much the same as what the Fed is trying to do right here in the US: "The rising value of the stocks in recent years has attracted hundreds of thousands of small-scale or retail investors in Bangladesh, says the BBC's Anbarasan Ethirajan in Dhaka. It became a popular investment for ordinary people, often providing higher returns than bank deposits and savings." Well, with the USA today posting an article with the following title on its cover page: "Experts agree: Get over your fear and get back into stocks ", and more incredulously, when one of these so-called experts is none other than David Bianco, the same utterly irresponsible creature who in October 2008 cut his 12 month S&P forecast from 1650 to 1500, well there is nothing much left to say: Bernanke has succeeded in converting America into a third-world subcontinent country.

<img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/havenstein/Bangladesh.jpg"/>

From BBC: (http://www.bbc.co.uk/news/world-south-asia-12033373?utm_source=twitterfeed&utm_medium=twitter)


The index ended the day down by 552 points or 6.72%. It has been on a rollercoaster ride in recent weeks, hitting a record high on 5 December, having climbed 80% since the start of the year.

But on 8 December it nosedived, prompting protests in Dhaka and towns elsewhere.

On Sunday, at least 500 investors hurled bricks at law enforcement officers near the Dhaka Stock Exchange and the Securities and Exchange Commission (SEC) offices, said local police chief Tofazzal Hossain according to AFP news agency.

Analysts say Sunday's index fall was triggered by a central bank interest-rate hike.

The regulators have also taken measures in recent weeks to restrict money supply into the share market after concerns that stocks were overvalued.

The move forced big institutional investors to withdraw from the market, triggering panic among individual investors.

The rising value of the stocks in recent years has attracted hundreds of thousands of small-scale or retail investors in Bangladesh, says the BBC's Anbarasan Ethirajan in Dhaka.

The rising value of the stocks in recent years has attracted hundreds of thousands of small-scale or retail investors in Bangladesh, says the BBC's Anbarasan Ethirajan in Dhaka.

It became a popular investment for ordinary people, often providing higher returns than bank deposits and savings.

Regulators have now agreed to relax some of the conditions, hoping that will increase the money supply and stabilise the market, he says.

And yes, ladies and gents, all this is coming to a very cornered Chairmen close to you, who now faces the biggest dilemma of his pathetic career: let monetary policy be loose in perpetuity, bringing the price of oil to triple then quadruple digits (and so on) shortly thereafter, or tighten, watch the stock market plummet, and destroy his much desired, and even more imaginary, wealth effect.

http://www.zerohedge.com/article/riots-erupt-bangladesh-after-stock-market-plunges-67

[osoab]

I'm guessing they don't hold much silver or penny stocks.

[FunnyMoney]

I'm guessing they don't hold much silver or penny stocks.


After living expenses, taxes and regulations I would figure the average worker there would be lucky to buy two ounces of silver. The nations of the world removed silver from the coinage a half century ago. Unarmed and with only play money in their pockets, the workers of the globe have some big shocks coming to them and can do very little about it.

[Book]

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/havenstein/Bangladesh.jpg

You call that a "riot"?

:D

[Carbon]

You call that a "riot"?

Well, it is Bangladesh. What are they supposed to destroy that isn't a wreck already?

[Twisted Titan]

I'm guessing they don't hold much silver or penny stocks.


After living expenses, taxes and regulations I would figure the average worker there would be lucky to buy two ounces of silver. The nations of the world removed silver from the coinage a half century ago. Unarmed and with only play money in their pockets, the workers of the globe have some big shocks coming to them and can do very little about it.



Contrast that with the abilty of the average person to walk into a coin shop a buy a 99 % pure silver coin for less then 40 dollars.

Talk about being dead from the neck up.

T

[osoab]

I'm guessing they don't hold much silver or penny stocks.


After living expenses, taxes and regulations I would figure the average worker there would be lucky to buy two ounces of silver. The nations of the world removed silver from the coinage a half century ago. Unarmed and with only play money in their pockets, the workers of the globe have some big shocks coming to them and can do very little about it.


I meant the see saw whips that you could see in the these stocks/bullion.
I don't see many of us calling for riots when silver plunges +5% or when penny stocks drop 63%.

[FunnyMoney]

Talk about being dead from the neck up.



The workers of the world are unarmed and mostly believing that that's actually a good thing. They have embraced their central planners or at least willing to tolerate them, regardless the riots that erupt every once in a while.

What do they ask for they do riot? More handouts and more "fixing of things" from the same people that have caused their suffering to begin with.

This is not going to end well. When the USA debt implodes, the rest of the world is going to get a wake-up call as well. I expect it to be every bit as bad in most of the world as it will be in the USA. The safety net of honest money can't be found anywhere, few "regular" people and less than 1% of the world's workers hold enough gold and silver to go around the totally corrupt economic and financial systems of today. Only the USA has the self protection to potentially stand up to the owners of the system and it's very doubtful that some plan A would work.

I would expect TPTB to throw everything they have, including bio-warfare at the USA if somehow a freedom movement were to emerge once the real crisis begins. The only people likely to escape death or 100% slavery will be those with a solid plan B. Nobody has a plan B in Bangladesh unless they've already got millions of dollars in wealth. Most of the world is in the same situation. The only really interesting escape stories will likely evolve in places like Alaska, and remote regions of South America. The mainland USA is a wildcard, but odds are currently running quite low there.