Economy Blog

Last week was again in token of volatility. One day record growth in 5 years and next day credit fear sell off. Standard and Poor´s reported expectation for total write-downs 285 bln USD and predicted soon end of credit market turmoil. Day after Bear Stearns bailout dragged markets again to red.Coming week brings FED interest rate decision. What is broad market expectation? Based on futures the most probable (94%) is cut by 75 bp 2,25% on 18.3. Next meeting is scheduled for 30.4. and current expectations are 84% for 25 bp cut….
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“I think this is a bridge to a permanent solution,” Bear Stearns chief executive Alan Schwartz said during a conference call with investors following the announcement of emergency financing from JP Morgan Chase and the Federal Reserve. But it was a different kind of bridge that was on the mind of Jimmy Cayne, the chairman of Bear Stearns. As Bear shares plunged and Wall Street began to speculate that the bank may not exist as an independent entity by the weekend’s end, Cayne was in Detroit, playing in the North American Bridge Championship.
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Original Source

Last week was again in token of volatility. One day record growth in 5 years and next day credit fear sell off. Standard and Poor´s reported expectation for total write-downs 285 bln USD and predicted soon end of credit market turmoil. Day after Bear Stearns bailout dragged markets again to red.Coming week brings FED interest rate decision. What is broad market expectation? Based on futures the most probable (94%) is cut by 75 bp 2,25% on 18.3. Next meeting is scheduled for 30.4. and current expectations are 84% for 25 bp cut….
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We’re going to open up this forum in the Community area of DealBreaker for any comments or speculation about Bear Stearns. Let’s see whether we can beat the market and the mainstream financial press with our communal intelligence.

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(March 14, 2008 05:30 PM, by Arnold Kling) In an unusual move, The Fed is lending to Bear Stearns. My view of what is going on starts with……
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(March 14, 2008 04:57 PM, by Arnold Kling) Denis Dutton writes, Human beings are naturally hierarchical and they like arranging themselves into hierarchies of skill, age, wealth, competence,……
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(March 14, 2008 04:11 PM, by Arnold Kling) In a recent comment, Troy Camplin pointed to a short story that he wrote a few years ago. Milton Wilcain……
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