Currency Markets in the News
How About a Coordinated Rate Cut Tonight?
October 7, 2008
The separation by central banks of their targeted liquidity-pumping efforts from stabilization monetary policies made conceptual sense until recently. However, new realities call for fresh thinking, and there is little time to waste. Credit markets are no longer suffering from just a lack of liquidity. Big institutions have failed, mutual trust is lacking among survivors, […] More
Larry's Blog
Recommended Reading
October 7, 2008
Confused about the rapidly evolving global credit market crisis? Do you wonder how years of very robust economic expansion could transform within a year into the scariest situation in 80 years and how a setback in a fairly small segment of one country’s financial markets could paralyze much of the world economy? The situation has […] More
Currency Markets in the News
Recessionary Trends in German Industrial Orders And British Industrial Production
October 7, 2008
The volume of German industrial orders rebounded 3.6% in August. While such a bounce was not anticipated, the trend remains clearly adverse. Orders had declined in each of the eight previous months and were still 6.3% lower than last November. Expressed at an annualized rate, German orders were 7.8% weaker in July-August than their average […] More
Central Bank Watch
A Tale of Two Central Banks
October 7, 2008
I had hoped that the Reserve Bank of Australia would exceed market expectations with the size of its rate cut, and officials there delivered with their largest since reduction since 1992, a 100 basis-point cut to 6.0%. Today’s move follows a 25-bp cut in September, which had been the first easing since 2001. The aggressiveness […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Australian Central Bank Rate Cut By 100 Basis Points
October 7, 2008
Iceland near default, accepts loan from Russia. Government there seizes second largest bank and pegs crown at 131 per euro after sharp drop. Several British bank shares tumbled. There is talk that the government will inject $79 billion of capital into banks. Reserve Bank of Australia slashed its cash rate to 6.0% from 7.0%, exceeding […] More
