Since Lehman Failed
October 3, 2008
Market participants left work three weeks ago on September 12th expecting the Treasury to arrange a buyer for Lehman or to step in at the last minute and nationalize it. The allowed failure of Lehman was a mistake, which will exact a huge bill on taxpayers and already has hurt asset holders. Here are some net changes for those three weeks. Gold prices are 9.5% higher, while oil has dropped 7.5%. Ten-year Treasury yields are 11 basis points lower, and the Dow Jones Industrial Average is down 9.6%. The dollar rose 3.1% against the euro but fell 2.5% against the yen. The buck advanced against commodity currencies like the Aussie dollar (6.3%), Canadian dollar (1.8%) and kiwi (0.9%). It rose 1.0% against sterling but edged 0.2% lower against the Swiss franc. The greatest strain can be found in short-term Libor rates, which show net gains of 151 basis points for dollars, 68 bps for C-dollars, 57 bps for sterling, 48 bps for Australian dollars, 38 bps for euro, 32 bsp for Swiss francs and 14 bps for yen.
Tags: Dollar
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