Hawaii business analysts weigh in on Wall Street free fall - Hawaii News Now - KGMB and KHNL

Hawaii business analysts weigh in on Wall Street free fall

By Holly Juscen – bio | email 

HONOLULU (HawaiiNewsNow) - It was a Wall Street free fall partly triggered by the financial crisis in Greece. As day turned to night there, more violent protests spread through the streets of Athens.

The Greek parliament had approved spending cuts that were required in exchange for a 140-billion dollar bailout from other European nations. Investors are worried that Greece's financial troubles will spread.

Local investment expert, Neil Rose of Cadinha & Co., said this is a worldwide problem, indicating a slower economic recovery than we think

"Countries like Greece and Portugal and Spain highlight a bigger problem that we have. They are no doubt weaker links but this is something that is worldwide in nature, so we need to get a handle on out debt or investments for investors become more risky," said Rose.

Wall Street was on on pins and needles Thursday. The world watched in shock as the bottom fell out at the New York Stock Exchange. The Dow Jones Industrial average dropped nearly 1000 points, triggering computer programs to sell. There were reports that a technical glitch accelerated the selling.

"Market watchers have been kind of expecting a stock sell off at some point. What they didn't foresee was the magnifying effect of computers programmed to sell-sell-sell when markets fall" said Hawaii News Now's Howard Dicus.

While it's one bad day at the New York Stock Exchange, the global financial crisis is something local investors and economists will be watching.

"We are somewhat vulnerable in the sense that we do depend on the health of other states and nations because tourism is still our main attraction and money maker. We do have to follow that locally, because whether we like it or not, we are subject to global forces, " said Rose.

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