this plans and world markets so we're now joined by michael hewson he's the chief market analyst at c.m.c. markets in london michael thanks for joining us is this a proper crash or is it just the market correction that has been over due. i think it's a long market correction we've been rising quite steadily for the toss to the story is now and we really haven't seen this talk of correction for all of that time. and i think it's also important to say that the stock market is not the economy when the economy starts with improve interest rate starts to go up sometimes you get this divergence whereby the market starts a price in higher interest rates a much more positive outlook but it actually has the effects because the stock market is a forward looking indicator of printing about a profit psyche and i think that's what we're seeing here i mean it just brings me to that it is is it justified if we're looking at the fundamentals in the u.s. . i think it is absolutely justified by small case last friday's wage growth was the last piece of the puzzle and ultimately i think investors need a ver

records had said and many others around him many other people like him many people who have gone on c.m.c. and bloomberg have said the regulators will destroy it and you know just get ready for the i.r.s. to crack down on you or you know regulators to squash you or the department of jet justice to squash you in the next episode we're going to talk about arizona and their tax policy but welcoming bitcoin as payment of taxes but in terms of this. the c.s.t. seaguy. chairman was very very positive he's now got a huge following on twitter of all the twitter folk. folk but then we'll go into the f.c.c. guy he was he was positive but not quite as positive no ok so i mean he's making some correct noises about the relationship between bitcoin and the block chain you know there was an attempt to split these two and say oh the blog is great i don't like bitcoin understands that you can't separate the two that in fact the block chain is enabled by bitcoin not the other way around so it makes it secure and so he's got now bitcoin one zero one again but i remember the regulators like for our children

currencies are going to have to adjust to joining us now from london is david madden a market analyst at c.m.c. markets good to have you with us david so the general consensus this week has been the stock prices been maybe two i for months if not years and then. a big drop was seen as somewhat likely if not inevitable is that how you see it. that's exactly how i see it for too long investors were sleepwalking into the into the raging bull market that was going on underneath and investors and traders forgot the financial markets can fall as well i was right and there was so much positive momentum there was so much positive economic indicators and there's so much enthusiasm surrounding global stock markets particularly those in the united states such as that of the dow jones and the s. and p. five hundred investors quite frankly got complacent the ignore the fact that volatility was at multi-year loans and they assumed that the stock market's weak we'd keep reaching fresh record highs or a multi-year highs here in europe or in asia and then we did hit a bit of a speed bump and we saw. average ea