Stock market: correction or crash?

Last week stock markets around the world suffered their heaviest losses since 2003 because of fears of a US recession. FTSE lost about 5% whilst others lost as much as 7% at some point.

Although most of the loses have now been recovered, there are still many questions over where the global economy, especially the US economy, is heading.

This ‘crash’ , as many national and regional newspapers called it, came as a no big surprise to most people as events like this were predicted years earlier. With highly inflated stock prices and house prices, experts expected some ‘corrections’ along the way.

Is it one of those corrections or is it a sign of something bigger yet to come?.

The general feeling of people on the street is that we haven’t seen all of it yet – there is still a lot worse to turn up. May be we’ve just seen the tip of an iceberg – the coming events could be nastier.