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Entries for January, 2008

The Fed to the rescue

What an extraordinary week! Share prices plunging. Billions of dollars previously unbeknown to management lost by a French bank’s trader. The Fed riding to the rescue with a huge 0.75% rate cut. The market adjusting their expectations to expect even more this week. Gold to new highs. Even US politicians coming to an agreement in election year about their own rescue package … Read Risk aversion takes hold

A US recession?

The talk now is of a US recession, and of sharply lower US interest rates. And yet the USD has not tumbled? There is good reason for that … Read When recession starts