What happens to the money??

In the days before the tsunami hit Japan, their stock market the Nikkei 225 Stock Average had its highs and lows throughout the month. However, when the tsunami hit the market took one of the biggest losses to date, dropping 21% in the two days following the tsunami. How will this drop in economic status effect not only Japan, but also the markets around the world? It seems that the industries in Japan will continue to drop behind on their products and cause economic troubles for companies around the world in the second quarter. The only money solution that seems to be going Japan’s way is their currency the Yen. During natural disasters investors looks to put their money in safe bets, and currency across the world is not in good shape. It seems that investors look to help the Japanese in a comeback, by investing in the Yen making the economy a little stronger.

Michael Manzo
Sources: http://indonsia-stock-exchange.blogspot.com/2011/03/japan-earthquake-and-tsunami-effect-on.html

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1 Response to What happens to the money??

  1. rachael hindman says:

    The current economic crises that are plaguing such areas as Greece, have a positive effect on the Yen. The global economy is not in the best situation at the moment and if this downturn were to have happened in a more stable or bull market than I think the economic impact would have been felt greater in a more negative way on Japan. But with the Euro essentially tanking and even Americas downgrade last year in credit status, this makes for a small cushion for Japan to fall back on. As for the economic impact of the tsunami itself was devastating and there is no real reassurance that it wont happen in the near future. With as much climate change that is happening just this year, its hard to predict what the forecast will be for huge disasters such as that. This predication is hard to nail down though and should not effect the global interest of Japan.

    NPR: Greece and its effects on the global markets – all things considered – reoccurring segment that can be heard on 104.1

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