THE LANGUAGE OF FALLING MARKETS

Stock markets around the world have recently fallen sharply as a result of the financial crisis and fears of a world recession.
In spite of short-lived rebounds the downward trend continues with some shares plummeting to new lows.
There is no shortage of vocabulary and idiomatic expressions to describe bear markets: to/a decline; to/a decrease; to/a tumble; to/a fall; to/a plunge; to be down; to/a fall; to/a drop, among other terms can all be employed to describe downward movements, not only in stocks and shares, but also in profits, consumer confidence, sales, temperatures, production, (un)employment, crime and so on.
The degree or speed of the fall can be specified by using the following adjectives/adverbs* : slight/slightly (small); steady/steadily (regular); sharp/sharply or steep/steeply (large) and dramatic/dramatically.
*These can equally be used to refer to upward trends

It remains to be seen how much further the markets will fall. Indeed, it seems that the bottom has fallen out of the markets, with some companies' shares almost worthless. Investors are hoping that the markets will soon bottom out, although few expect a recovery (vb. to recover) in the near future.

VIDEO : THE FINANCIAL CRISIS

Watch the following video and listen out for the key vocabulary listed below.

to take steps
to shore up
unveiling (to unveil)
stakes
to follow suit
objectionable
crafting these plans (to craft)
a rescue package
home-owners
to avoid foreclosure
to the tune of
a downturn
to issue letters of credit
rebounded on news of ... (to rebound)
to abandon optimism

THE LANGUAGE OF FINANCIAL CRISES

The severity of the current financial crisis is reflected in the language employed to describe the events that have unfolded over the past few weeks. The Financial Times, reporting on a European initiative to protect European banks, explains that 'the idea is to help bail out banks, not mop up toxic assets...It comes as governments on both sides of the Atlantique scramble to find ways to contain unprecedented stress in the global financial system.'

The FT also reports that the crisis is hitting other sectors of the economy : 'Manufacturers feel the pinch as woes spread from banking crisis'. The paper explains that governments are determined to shore up the global financial system which is undermined by 'a crisis of confidencethat has paralysed the interbank money market'.

The financial crisis has already taken a heavy toll, leading to 'a string of failures of weak financial institutions' and 'threatens to cause a full-blown credit crunch'

LISTENING : ASSET MANAGEMENT

Listen to this interview about asset management and check the meanings of the words and expressions in bold.

baffling
central thesis
served the needs of
tend to
even though
over time
double digits
drive down
fat returns
as the saying goes
vivid
hand you
hopeless
damning
luck over skill
genuinely
look back over the past 10 years
to spot
15 straight years
abysmal
accurately
skillful
credit crunch
betting
undermine
it's been around
undergoing
witnessed
to claim credit for
it's all down to
narrow that down
so-called
exchange traded funds
low fees
driver of change
so on and so forth
mimics
over the long run
the likelihood is
turning to
the skill set
terribly skillful
narrowed
plausibly
riding on the back of
as we go ahead
sovereign wealth funds
wary of
flack
buying stakes in
broader spread of
retreating from
putting aside
come up with
attractive proposition
Would you care to...?
accordingly
lock in the return
a punt
coming back to
overall
sustainable investing
mistreating
sued
turn out to be
bogged down in
a trade-off
to beat the market
aim for higher returns
a backwater
sensible
to rely on
to pick

CARTOON

Look up the words in this cartoon from The Economist, which charts the US President's decline.