RE: RE: Nikkei & Hang Seng DOWN...In part as to your question I can offer you this:
" I was around during the 70's and 80's, young but old enough to be involved in business as a manager in the retail industry. During the early seventies there was an oil embargo, gas shortages and the price of crude went through the roof. This caused massive inflation towards the end of the decade. Inflation was out of control by 1981 and after Ronald Reagan was elected president, a change was in the making. The appointed Chairman of the Federal Reserve was Mr. Paul Volcker. He quickly took action on dealing with inflation and raised the fed funds rate into the high double digits. Mortgage rates were running at 18-21%. This brought about and end to high priced housing and the housing market crashed in many parts of North America as much as 60% in some areas. With the crash in housing came a deep recession which eventually led to the crushing of inflation. Consequently with inflation being squashed in the early 80's , the price of Gold fell with it." My scenario. I was there.