SOMETHING unusual is going on in the stock market (okay, that's understating it a bit).

Last week, the Straits Times Index fell more than 15 per cent. It is down 50 per cent from its high of one year ago.

The downturn seemed to follow US markets, although there was no big news to trigger the crash.

So what spooked the markets?

Mr Byron Hanes, a US-based trader told me: 'This week, people analysed the financial wrecks we have seen over the past two months. It made them stop, think and worry.'

Sad stories were in abundance.

A bank employee on Shenton Way said: 'I lost more money in the stock market last week than I will make from my job this year. It affects my motivation to work. I find it hard to concentrate.'

A heavily-invested office worker had a similar story: 'I spend at least one hour per day watching the market online. Sometimes I refresh the screen every 10 seconds. Of course, it doesn't help.'

Last week, The New Paper surveyed 100 people to gauge the stock market's effect on the man in the street.

Can't be bothered

Guess what? The average person doesn't care. Half couldn't be bothered about the stock market.

I found the same talking to my neighbours at a coffee shop in Ang Mo Kio where I sometimes hang out.

Most don't own shares. Some even took a perverse pleasure from the market's decline.

A coffee drinker who wanted to be known only as Mr Tan said: 'Good. Now the rich will find out what it is like to be not-so-rich.'

On Shenton Way, it is a different story. Even people with no money in the market think we are witnessing something historic.

The last time the market fell so far so fast was 21 years ago. On 19 Oct 1987, the US stock market declined 22 per cent, its biggest one-day drop in history. World markets followed.

It took two years to recover, but the real economy never suffered. A recession didn't follow.

This time may be different.

A financial public relations employee told me: 'Suppose there is a run on the banks and people withdraw their money for no reason. That can be fixed. Irrationality can be shown for what it is. Facts can be used to kill rumours.

'But suppose there is a rumour that General Motors may go bankrupt and it does? What do you do then to calm markets?'

Overseas, sentiments are no different.

Mr Mark Hovermale works for a health insurer in California. He told me: 'Our family just renovated our bathroom for US$40,000 ($60,000). If I'd put that money in the stock market, I'd have only half of it today. I am glad I invested where I did.'

This article was first published in The New Paper on October 13, 2008.