Stock market crash is 'good old-fashioned correction', says commentator

Stock market crash is 'good old-fashioned correction', says commentator

Stock markets have dropped across the world

Tuesday, February 6, 2018

The stock market crash is just a "good old-fashioned correction" after years of a false sense of security, according to a commentator.

The FTSE 100 fell 255 points this morning as global markets crashed due to the biggest-ever points fall in a single day of America's Dow Jones. Bitcoin has also fallen sharply, meaning the cryptocurrency has now lost 50% of its value in the year to date.

David Buik, a commentator on global financial issues, told Mike Graham and Katie Perrior we need to be "weaned onto really proper interest rates and we’ve been lulled into a sense of false security with these equity markets because they've got valuations of the likes of which we've never seen before."

He said: "People have been saying well I'm putting [this month's Dow markets] down to the fact interest rates are going to go up maybe three times because the [American] economy is in great shape, and I don’t actually subscribe to that view too much."

But Buik said: "I think and hope [this] is a good old-fashioned correction."

He also commented on the fears over Bitcoin as some believe it will be subject to greater regulation. Ge thinks this "would be virtually impossible however much the authorities dislike bitcoin."

"You can't regulate foreign exchange. It’s going to be very difficult for authorities to regulate the bitcoin."

The commentator even touched about the housing crisis, saying "the only way you're going to deal with this property thing is force people to sell land at a reasonable price" however that is "not going to happen."

Listen to the full interview above