The planet’s financial press is beginning to see things our way. “In the first place, the U.S. federal reserve applied a very expansive monetary policy.”
October 28th, 2008 | Bill Bonner | 1 comment | ContinuedMarket
Commentary on global share markets by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Federal Reserve Boosted Total Fed Credit
Last week the Federal Reserve boosted Total Fed Credit, namely the amount of fresh credit that appears on the books of the banks, by another staggering $245.4 billion!…
October 28th, 2008 | Mogambo Guru | 0 comments | Continued
Stranded on a Crusoe’s Island With One Stock
A few weeks ago, you’ll recall that we told you we were reading Daniel Dafoe’s Robinson Crusoe. The question came up: if you were stranded on a desert island for ten years, what stock would you want to own for that ten years? Crusoe, in point of fact (although the story is fiction) was stranded on his Island of Despair for twenty-eight years-which is plenty of time for the eighth wonder of the modern world (compound interest) to work on your behalf…
October 28th, 2008 | Dan Denning | 1 comment | Continued
Twenty-Five Standard Deviations in a Blue Moon
Sometimes it’s helpful to take a look back at where we were last year at the same time to gain some perspective on what is occurring now. And we think that this essay, first published on November 12, 2007 will do just that. Read on…
October 27th, 2008 | Bill Bonner | 0 comments | Continued
A ‘Bloodbath’ on Wall Street
With Halloween just around the corner, it is fitting that today’s headline on CNN.com was “Stocks Headed for a Bloodbath.” Not exactly what you want to see first thing in the morning, but at least it doesn’t keep you guessing.
October 27th, 2008 | Kate Incontrera | 1 comment | Continued
Europe Faces Day of Reckoning in Emerging Market Debt
Europe, for its part, has a brewing problem in emerging market debt. Austrian banks are exposed to sovereign emerging market debt to the tune of 85% of GDP. Swiss banks have emerging market debt equivalent to 50% of GDP. It’s 25% in Sweden, 25% in the U.K., and 23% in Spain. If more emerging markets go the way of Iceland and default on debt or go bankrupt, Europe’s banking system faces major trouble. Just what we needed. More trouble…
October 27th, 2008 | Dan Denning | 6 comments | Continued
$4.1 Billion in Investor Funds Have Been Frozen Overnight
Before we get to how much worse the global financial crisis of 2008 could get, what about the local market? The great cash freeze of 2008 is upon us. Today’s Australian papers tell how fund managers AXA, Perpetual, and Australian Unity have frozen redemptions from their mortgage funds. Uh oh. At least $4.1 billion in investor funds have been frozen overnight. It’s an effort to halt the migration of investors from non-guaranteed mortgage funds toward government guaranteed bank accounts.
October 24th, 2008 | Dan Denning | 8 comments | Continued
Seventh Biggest Drop in Wall St History
The mood was bleak on Wall Street at the closing bell yesterday, with stocks looking at the seventh-biggest drop in history, falling 514 points. A litany of data showed that neither Wall Street, nor the global economy, was anywhere in the vicinity of the road to recovery…
October 24th, 2008 | Kate Incontrera | 1 comment | Continued
Strong Dollar is in our Nation’s Interest
“I believe that a strong Dollar is in our nation’s interest,” claimed Henry Paulson in his first speech as US Treasury secretary, made at Columbia University two years ago. It’s a phrase he then parroted time and again, repeating the formula first dreamt up by Robert Rubin 13 years earlier.
October 24th, 2008 | Adrian Ash | 0 comments | Continued
Financial Crises in History
We all have our favourite financial crises which fascinate us by their dramatic sequence of events. Professor Galbraith was fascinated by the 1929-1933 Great Crash…
October 24th, 2008 | William Rees-Mogg | 1 comment | Continued