If this were a real war between inflation and deflation, the armies of deflation would have just cut off the head of one of inflation’s leading generals and put it on a pike as they stormed across the global marketplace, setting fire to asset values and mowing day stock markets. So the $700 billion TARP plan, at least so far, is a total failure in reflating confidence in the stock markets. Let’s hope it fares better in repairing bank balance sheets. But if it doesn’t, what’s Plan B? More on that in moment.
October 7th, 2008 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "inter-bank lending market"
Assets Race to the Bottom
Which asset class will find the bottom first? Will it be commodities, property, ore shares? And which shares? Local shares got a big yesterday, especially the miners.
October 2nd, 2008 | Dan Denning | 0 comments | Continued
Credit Markets Threaten Retail Banking, Bank Runs Next?
The share market is not the most important story today. That may be tough for you to believe. After all, the 777 point figure decline on the Dow is the most visible symptom of what’s killing the market. But in terms of percentages, Monday’s 6.9% decline in the U.S. doesn’t even rate as one of the top ten worst one day percentage declines in history. Maybe that will come later this week. It might come in emerging markets. The big story, though, is in the credit markets…
September 30th, 2008 | Dan Denning | 14 comments | Continued