300
18th December 2007, 07:37 AM
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The Dow Jones fell another 175 points overnight with investors not happy with actions by the US Fed. The US Fed put up $20 billion in 28 day credit to the highest bidder in an attempt to allow banks to borrow direct from the Fed and allow themselves funding to continue to lend. The US Federal Reserve's chairman commented on the growing potential for Stagflation - a period where inflation rises as the economy weakens. This was not seen as a flattering comment. The US consumer is doing it tough with high energy prices (the rising cost of oil), devalued homes, and higher costs of goods and services.
As the US economy hit the bottom of the cycle, we are nearing the top of ours. The ASX however dropped over 150 points on concerns about a global recession. The fingers of the US subprime hitting our shores was made public last night as Centro property giant has lost more than 70% of it's share price. Not the best of Xmas's in the pipeline for the stock markets.
Just my 2 cents.
The Dow Jones fell another 175 points overnight with investors not happy with actions by the US Fed. The US Fed put up $20 billion in 28 day credit to the highest bidder in an attempt to allow banks to borrow direct from the Fed and allow themselves funding to continue to lend. The US Federal Reserve's chairman commented on the growing potential for Stagflation - a period where inflation rises as the economy weakens. This was not seen as a flattering comment. The US consumer is doing it tough with high energy prices (the rising cost of oil), devalued homes, and higher costs of goods and services.
As the US economy hit the bottom of the cycle, we are nearing the top of ours. The ASX however dropped over 150 points on concerns about a global recession. The fingers of the US subprime hitting our shores was made public last night as Centro property giant has lost more than 70% of it's share price. Not the best of Xmas's in the pipeline for the stock markets.
Just my 2 cents.