October 2008 Monthly Archive

Credit squeeze explained!

How did the actions of subprime mortgage borrowers in the US affect global financial markets and lead to the ongoing liquidity crisis - and will the resulting fallout hurt the wider economy? Here's a cool interactive explanation of the credit squeeze from FinancialTimes.com. … More…

Irrational Exuberance

It seems to be the time when the dollar has begun to defy laws of gravity again. During the last decade, the dollar defied laws of economics and stayed buoyant in spite of a huge and ever widening current account deficit.… More…

More Monetary and Fiscal Policy Measures In the Offing

The global financial crisis seems to have taken the US by storm. Statements by the US Fed suggest that the nation's economy is headed for a recession if already not there.Even though, the US announced a US $ 700 billion rescue package, opinion is fast emerging that this may not be sufficient… More…

The Dollar Is Up Despite Economic Weakness?!

The US economy is the midst of an economic upheaval and yet the dollar is up. The US Fed cut interest rates to induce liquidity and yet the dollar rose. The dollar's skewed behavior seems to be a silver lining for the US currency. … More…

The Dollar Bailed Out!

The US House approved the massive $700 billion package finally, after having rejected it earlier last week. The earlier rejection of this badly needed package seems to indicate that lawmakers were opposed to using taxpayer's money to bail out the financial system. But, it appears that after a dose of education and some added sops, the lawmakers changed their stand. … More…

"Courage is being scared to death - but saddling up anyway."
John Wayne
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