No two financial crises are exactly the same. There are times to be an observer, watching from the sidelines. And there are times to act. A week ago Monday, when the Dow Jones Industrial Average plunged 777 points after the House rejected the proposed $700 billion rescue legislation, the Nasdaq Composite dropped through my latest…
HOMEOWNERS will receive the biggest single reduction to their mortgage payments in 16 years after a worried Reserve Bank slashed interest rates by one percentage point yesterday to shield the economy against the global financial crisis. None of the major banks will pass on the cut in full but Westpac, the Commonwealth Bank, the NAB…
This note looks at the continuing turmoil in financial markets. The key points are as follows: • Shares have made new lows in the past week on more bank failures and uncertainty about the US relief package. • Successful approval the implementation of the US debt relief package should head off a worst case economic…
This note looks at the wild swings in financial markets over the last week or so. The key points are as follows: • The move to a comprehensive solution to the financial crisis by US authorities substantially removes the risk of a financial meltdown. • The ride for investors will remain rough though as the…