Ben Bernanke Gives Another Shock
The Fed today lowered its rate further by a quarter point. Now the rate swings at 4.5% for the borrowers, which is expected to go even lower.This makes it evident that there is going to another round of rate cut in the High Yielding Savings Account in the days to come. Its to be noted that already in September most of the banks cut their rate by half a percent.
I pity my fried who just opened an online account with HSBC, hoping to make some money by parking his own!!
one more alarming issue are the oil prices. They have soared to an all time high- $95 a barrel!!!
The sub prime mortgage sector as we know is biting us back. I think the Risk management group at most of the financial institutions failed to stop then when they started to show mercy and lend in the sub prime sector.
Most majors like the blatantly announced their fall starting from the BNP Paribas to Merrill Lynch for now. Many to follow i believe
Now the next tight corner in our markets is going to be "INFLATION", which we have started to feel!!!!
Few quotes about the economy
"The economy is weakening and financial markets remain unsettled," - Mark Zandi, chief economist at Moody's Economy.com.
"The economy is facing a perfect storm right now of a crisis-related tightening of credit, higher oil prices and lower house prices," - David Jones, chief economist at DMJ Advisors
For who dosent know who Ben Bernake is
He is the present Chairmen of Federal Reserve
posted by Quantum Dot @ 11:21 PM
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