23rd February 2009
Last week, world stock markets crumbled under the relentless barrage of bad news. Markets were left staring into the abyss as the global sell off continues. All eyes were on the wider S&P 500, which unlike the Dow Jones, managed to avoid breaching the lows of 2008. There is a huge fear that a technical breach of this level could result in a cascade of selling. After all, what is there left for world governments to do? They have already started printing money, and some like the UK government are taking on record levels of debt.
Investors were evidently purging any potential risk in their portfolio, and turning to the perceived safe haven of gold, which touched the underside of $1,000 on Friday.
Sterling was largely unmoved by the announcement that national debt is set to rise to 47.8% of GDP, the highest level since the 1970s. More worrying were the reports which estimated that the addition of the part nationalised banks to the government’s accounts, could see the debt to GDP ratio shoot up to 100%. Although this figure is alarming, it has largely been priced in by market participants. Businesses and individuals have been earning less money, and as a consequence, tax receipts have plummeted. At the same time there are increasing demands on the state such as the rising unemployment benefit claims.
Still, the UK economy isn’t bankrupt yet.... Credit default swaps show that the risk of the UK defaulting on its debt has shot up over the last year, but even so these risk levels are still below troubled economies such as Ireland, Spain and Greece. It remains to be seen if the chance of further bank bailouts have been fully priced in yet. That is of course, assuming that the government could afford to nationalise a bank like HSBC if it wanted to. After the various collapses over the last year, HSBC is actually now one of the largest banks in the world. HSBC fell 9% on the week on speculation that it may have to raise more than $15bn to cover write downs and exposure to Eastern Europe.
Oil and Financials, the FTSE’s two biggest sectors, pulled the benchmark index down while other sectors fared little better. Oil prices are going nowhere, while the outlook for the global economy remains bleak, and the financial sector is still hemorrhaging bad news.
There was little to cheer from the US after yet more economic data caused analysts to utter the familiar words “record” and “low”. Housing starts hit their lowest level since records began in 1959, and industrial production dropped 10% below the same period last year.
A revealing Washington Post article showed just how efficient markets can be sometimes. The article outlines the lead up to the Geithner announcement, and reveals that the big stimulus plan was rehashed at the last minute, leaving Geithner little choice but to go on air and offer vague outlines. At every stage of the crisis, time appears to be a luxury that officials just don’t have. They have to tread carefully between trying to do the right thing, and just trying anything to stop the financial world collapsing.
In the US, Automakers GM and Chryslers are still battling to avoid oblivion. The US Automaker industry is hanging by a thread. Further support is required to turn the sector back around, but this is far from being a dead certificate. Legacy costs from benefit support are now crippling the likes of the GM. It is ironic that the great US economy is in danger of losing a key industry, in part due to lavish benefits negotiated for union workers.
It is also worth noting that like many firms across the world that have gone to the wall, such as Woolworths in the UK, US Automakers were in trouble before the crisis broke. This global recession, like all recessions is exposing the weak businesses for what they really are. It remains to be seen if the remaining companies have enough strength to carry the world economy through this crisis.
The coming week’s highlights include Ben Bernanke testifying on Tuesday and Wednesday. US New home sales are released on Wednesday and existing home sales on Thursday. With no sign of an end to the housing slump in sight yet and so much riding on the market price of mortgage backed securities, these announcements will be followed with keen interest next week.
Gold has hit the headlines after breaching the $1,000 mark for the first time since last March. When this happened last time, the price pushed around 3% higher, before reversing back over the rest of the year. If the S&P 500 can manage to hold above the 752 level as it did on Friday, Gold’s onward march may be stifled in the short term.
A No Touch trade predicting that Gold/USD won't touch 1050 at any time during the next 40 days could return 108% at BetOnMarkets.com.
Yeah, the financial turmoil left my portfolio in bad shape but I'm keeping my fingers crossed that it would leave the reds soon. So far so good...
Cheers,
Ed
Thanks for the article. I hear one can get free premium account at rapidshare search engines . Is it so?
Add Comment Submitted by celebrex rx http://virtualatdp.berkeley.edu:8081/apbiology/~celebrexonline celebrex overnight shipping buy generic celebrex celebrex at the price ; abilify best price online http://www.ibm.com/developerworks/wikis/display/~leonccarvajal abilify lower price buy abilify online order abilify price ; cialis no prescription http://virtualatdp.berkeley.edu:8081/apbiology/~cheapcialis cialis at the price cialis price cialis no prescription ; cialis on line http://virtualatdp.berkeley.edu:8081/apbiology/~genericcialis cialis best price online cialis black price cialis generic online ; hydrocodone overnight shipping http://virtualatdp.berkeley.edu:8081/apbiology/~hydrocodone cheapest hydrocodone online hydrocodone buy price price hydrocodone search ; fioricet black price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapfioricet fioricet no prescription best prices on fioricet purchase fioricet ; kamagra rx http://virtualatdp.berkeley.edu:8081/apbiology/~cheapkamagra kamagra at the price best prices on kamagra kamagra lowest price ; kamagra generic online http://virtualatdp.berkeley.edu:8081/apbiology/~kamagraonline kamagra drug kamagra drug pill kamagra ; cheap levitra http://virtualatdp.berkeley.edu:8081/apbiology/~cheaplevitra purchase levitra price levitra search sell levitra online ; levitra lower price http://virtualatdp.berkeley.edu:8081/apbiology/~genericlevitra levitra minimum price levitra purchase price order levitra ; lexapro price http://virtualatdp.berkeley.edu:8081/apbiology/~cheaplexapro lexapro online buy lexapro lexapro cheapest prices ; order lexapro price http://virtualatdp.berkeley.edu:8081/apbiology/~lexaproonline lexapro net price lexapro for sale cheap lexapro generic ; order lorazepam http://virtualatdp.berkeley.edu:8081/apbiology/~cheaplorazepam lorazepam cost cheap lorazepam generic order lorazepam online ; meridia for sale http://virtualatdp.berkeley.edu:8081/apbiology/~cheapmeridia best prices for meridia sell meridia online cheap meridia ; generic phentermine price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapphentermine phentermine black price discount phentermine phentermine net price ; sildenafil best price onlinel http://virtualatdp.berkeley.edu:8081/apbiology/~cheapsildenafil sildenafil on line order sildenafil price sildenafil drug ; herbal sleeping http://virtualatdp.berkeley.edu:8081/apbiology/~cheapsleepwell sleep herbs herbal sleeping pills sleep herbs ; tadalafil on line http://virtualatdp.berkeley.edu:8081/apbiology/~cheaptadalafil order tadalafil tadalafil online prescription tadalafil for sale ; price tamiflu search http://virtualatdp.berkeley.edu:8081/apbiology/~cheaptamiflu cheap tamiflu tamiflu black price best prices for tamiflu ; tramadol buy now http://virtualatdp.berkeley.edu:8081/apbiology/~cheaptramadol tramadol black price buy tramadol buy tramadol cod ; ultram low prices http://virtualatdp.berkeley.edu:8081/apbiology/~cheapultram ultram buy now ultram net price pill ultram ; cheap valium generic http://virtualatdp.berkeley.edu:8081/apbiology/~cheapvalium prices on valium valium online price discount valium ; vardenafil online price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapvardenafil price for vardenafil buy vardenafil cheap vardenafil at the price ; buy viagra cod http://virtualatdp.berkeley.edu:8081/apbiology/~cheapviagra viagra buy now viagra oral viagra cost ; best prices for viagra http://virtualatdp.berkeley.edu:8081/apbiology/~viagraonline viagra generic online pill viagra viagra no prescription ; link price vicodin http://virtualatdp.berkeley.edu:8081/apbiology/~cheapvicodin order vicodin online order vicodin online vicodin overnight shipping ; link price xanax http://virtualatdp.berkeley.edu:8081/apbiology/~cheapxanax buy xanax cheap price for xanax cheap xanax ; generic zyprexa http://virtualatdp.berkeley.edu:8081/apbiology/~cheapzyprexa zyprexa for sale buying zyprexa zyprexa black price ; zyprexa purchase pricehttp://virtualatdp.berkeley.edu:8081/apbiology/~zyprexaonline zyprexa price zyprexa black price zyprexa minimum price ; buying aciphex http://virtualatdp.berkeley.edu:8081/apbiology/~cheapaciphex aciphex generic online aciphex best price online buy generic aciphex ; aciphex overnight shipping http://virtualatdp.berkeley.edu:8081/apbiology/~aciphexonline aciphex overnight shipping purchase aciphex order aciphex online ; take actonel http://virtualatdp.berkeley.edu:8081/apbiology/~cheapactonel buy actonel online actonel no prescription actonel best prices ; actonel rx http://virtualatdp.berkeley.edu:8081/apbiology/~actonelonline actonel net price actonel drug actonel net price ; buy actos online http://virtualatdp.berkeley.edu:8081/apbiology/~cheapactos actos purchase price pill actos price actos search ; cheap actos http://virtualatdp.berkeley.edu:8081/apbiology/~actosonline buy generic actos pill actos discount actos ; arimidex drug http://virtualatdp.berkeley.edu:8081/apbiology/~cheaparimidex arimidex overnight shipping arimidex low prices arimidex generic online ; arimidex price http://virtualatdp.berkeley.edu:8081/apbiology/~arimidexonline arimidex drug arimidex for sale order arimidex price ; avodart black price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapavodart avodart medication avodart rx purchase avodart ; order avodart http://virtualatdp.berkeley.edu:8081/apbiology/~avodartonline cheapest avodart online prices on avodart avodart lowest price ; januvia generic online http://virtualatdp.berkeley.edu:8081/apbiology/~cheapjanuvia buy januvia cheap buy generic januvia buy januvia online ; generic januvia price http://virtualatdp.berkeley.edu:8081/apbiology/~januviaonline januvia at the price order januvia price sell januvia online ; namenda medication http://virtualatdp.berkeley.edu:8081/apbiology/~cheapnamenda namenda minimum price namenda minimum price order namenda online ; buy nasonex cheap http://virtualatdp.berkeley.edu:8081/apbiology/~cheapnasonex purchase nasonex nasonex minimum price nasonex no prescription ; order nexium price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapnexium nexium online prescription nexium lowest price buy nexium ; price nexium search http://virtualatdp.berkeley.edu:8081/apbiology/~nexiumonline nexium online cheap nexium generic link price nexium ; plavix sale http://virtualatdp.berkeley.edu:8081/apbiology/~cheapplavix buy plavix cod generic plavix price generic plavix price ; plavix low prices http://virtualatdp.berkeley.edu:8081/apbiology/~plavixonline plavix low prices discount plavix plavix online prescription ; prevacid best price online http://virtualatdp.berkeley.edu:8081/apbiology/~cheapprevacid prevacid on line best prices on prevacid prevacid drug ; prevacid online price http://virtualatdp.berkeley.edu:8081/apbiology/~prevacidonline generic prevacid price prevacid online generic prevacid price ; purchase prograf http://virtualatdp.berkeley.edu:8081/apbiology/~cheapprograf order prograf price prograf drug prograf sale ; best prices for prograf http://virtualatdp.berkeley.edu:8081/apbiology/~prografonline discount prograf cheapest prograf online best prices for prograf ; protonix buy now http://virtualatdp.berkeley.edu:8081/apbiology/~cheapprotonix protonix black price buy protonix buying protonix ; protonix cost http://virtualatdp.berkeley.edu:8081/apbiology/~protonixonline protonix oral protonix net price pill protonix ; provigil purchase price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapprovigil provigil rx provigil online price provigil no prescription ; risperdal lowest price http://virtualatdp.berkeley.edu:8081/apbiology/~cheaprisperdal price for risperdal buy risperdal cheap risperdal black price ; risperdal rx http://virtualatdp.berkeley.edu:8081/apbiology/~risperdalonline cheap risperdal cheap risperdal risperdal online ; buy seroquel cod http://virtualatdp.berkeley.edu:8081/apbiology/~cheapseroquel cheap seroquel generic buy seroquel online cheap seroquel generic ; prices on seroquel http://virtualatdp.berkeley.edu:8081/apbiology/~seroquelonline seroquel sale order seroquel price pill seroquel ; singulair online http://virtualatdp.berkeley.edu:8081/apbiology/~cheapsingulair singulair no prescription singulair sale prices on singulair ; singulair price http://virtualatdp.berkeley.edu:8081/apbiology/~singulaironline singulair low prices singulair online prescription take singulair ; abilify sale http://virtualatdp.berkeley.edu:8081/apbiology/~genericabilify abilify cheapest prices abilify rx abilify price ; adipex online prescription http://virtualatdp.berkeley.edu:8081/apbiology/~genericadipex adipex online price adipex medication adipex medication ;buy ambien http://virtualatdp.berkeley.edu:8081/apbiology/~cheapambien ambien minimum price buy ambien cod ambien low prices ; generic adipex price http://virtualatdp.berkeley.edu:8081/apbiology/~cheapadipex discount adipex" >buy adipex online ; cheap ativan http://virtualatdp.berkeley.edu:8081/apbiology/~cheapativan sell ativan online buy ativan ativan lower price ; buy carisoprodol cod http://virtualatdp.berkeley.edu:8081/apbiology/~carisoprodol discount carisoprodol pill carisoprodol carisoprodol oral ; cheapest caverta online http://virtualatdp.berkeley.edu:8081/apbiology/~caverta caverta best prices caverta medication caverta purchase price ; celebrex best prices http://virtualatdp.berkeley.edu:8081/apbiology/~cheapcelebrex price celebrex search cheap celebrex generic order celebrex ; valium for sale http://talk.rachaelraymag.com/members/Mark_5F00_G/default.aspx valium minimum price price valium search valium generic online ; valium on line http://mipagina.univision.com/leonccarvajal order valium valium best price online sell valium online
Just hate to see these spammers.
Simoneau says, “Being a Daniel Webster Scholar alışveriş gave me confidence in my ability to practice law. More importantly, my employers knew because I was erkek giyim bayan giyim bayan giyim erkek giyim doğal ürünler a Webster Scholar, pet shop I could handle a Supreme Court appeal.” As a Daniel Webster Scholar, giyim he was evaluated each semester by a New Hampshire Bar bilgisayar Examiner, counseled clients under supervision, appeared before judges, and developed his skills and judgment in clinical settings. oto aksesuar The program is unique alisveris in the nation.
Post new comment