Archive for October 6th, 2008

Expecting A 50-Basis Point Australian Rate Cut Tuesday

October 6, 2008

While global financial markets spin further and further into very dangerous territory, the Reserve Bank of Australia Policy Board prepares to announce a rate reduction at 14:30 AEDT (03:30 GMT) on Tuesday.  Under the circumstances, a reduction of greater than 50 basis points makes more sense than a cautions move of just 25 basis points.  […] More

Currency Markets in the News

Political Uncertainty Amid Economic Chaos

October 6, 2008

In their wildest dreams, the scheming terrorists behind the 9/11 attacks, could not have hoped for a more ominous situation than what confronts Western capitalist societies just seven years later.  The G7 has entered its most synchronized economic downturn in over 30years. The international financial system is in disarray and will need sweeping changes and […] More

Bonds and Stocks

Bear Markets: How Bad Can They Get?

October 6, 2008

Market historians classify a bear run as any decline that exceeds 20%.  The Dow Jones Industrial Average fell below 10,000 today for the first time since October 2004 and is 29.9% below its high of 14,165 a year ago. Nearly nine years have passed since the end of the 1987-2000 bull run, which took the […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Equities in Massive Global Sell-off

October 6, 2008

The credit crisis has become even more acute. Euribor rates moved higher on 1-week, 3-month, and 6-month maturities.  The meeting on Saturday of leaders of Britain, Germany, France, Italy, EU Commision, Ecofin, and ECB released a statement that laid out principles but took no con concrete measures such as doing a comprehensive bad loan bailout […] More