Last weekend brought some bad news about financial institutions and markets went for a tailspin on Monday. The things cooled down towards the end of the week with interventions on the side of Treasuries and central banks worldwide.
This weekend, US Treasury and Fed are to talk over the longer-term solution to the current problems. The market rallied, for various reasons, at the end of the week and I'm looking forward to see the developments on Monday.
As of right now, there are still no news about some concrete steps. Apparently, the costs in the bad-debt cleanup could be somewhere around US$700 billion. When that is added to the write-offs so far the sum gets about right where the prognosis was for the costs of the current financial crisis. IMF estimates were $1.1 trillion and some economists raised it to $1.4. I think the current number is higher that $600 billion. So, it is about right.
As for the market index movement, the next couple of days is to show whether we have the trend reversal (from bear to bull), just a temporary bull because of short covering and a few good news, or a continued fall down.
This weekend, US Treasury and Fed are to talk over the longer-term solution to the current problems. The market rallied, for various reasons, at the end of the week and I'm looking forward to see the developments on Monday.
As of right now, there are still no news about some concrete steps. Apparently, the costs in the bad-debt cleanup could be somewhere around US$700 billion. When that is added to the write-offs so far the sum gets about right where the prognosis was for the costs of the current financial crisis. IMF estimates were $1.1 trillion and some economists raised it to $1.4. I think the current number is higher that $600 billion. So, it is about right.
As for the market index movement, the next couple of days is to show whether we have the trend reversal (from bear to bull), just a temporary bull because of short covering and a few good news, or a continued fall down.
Posts
No comments:
Post a Comment