Tuesday, Oct 23, 2007
There are concerns that a $75bn (£37bn) rescue operation put together by US Treasury Secretary Hank Paulson to stabilise the sub-prime market is intended to mask the scale of the crisis.
telegraph.co.uk: new credit crunch looms
Fresh turmoil in the global debt markets has set off sharp falls in commodity prices and high-risk assets as investors scrambled for safety.
The dollar soared as US investors liquidated foreign holdings, ending at $1.4129 against the euro and £2.0276 against the pound, in one of the most dramatic currency moves this year.
Rescue plan: Henry Paulson aimed to stabilise the sub-prime market
Libor spreads in Europe's interbank market jumped to 64 basis points, roughly the level that set off the credit crisis last summer and prompted a liquidity rescue by the European Central Bank. The iTraxx Crossover index that measures spreads on corporate bonds has jumped 100 basis since last week to 364 yesterday.
Posted by chris @ 08:22 AM (365 views) Add Comment
4 Comments
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1. sold 2 rent 1 said...
The gold correction could be short and sharp. With GBP over 2 for USD it could be great a opportunity to swap GBP for gold or gold stocks over the next week or so.
2. planning4acrash said...
Are you suggesting that gold could shoot up? Or that Sterling is about to plummet against the dollare (thus gold), or something else!
Also, I've been looking at how to buy gold, I could only find bullionvault.com and I really worried about how safe investment would be in a place like that, what if they went bust!! Maybe stocks are the way to go but I've never brough stocks before. I feel like I'm in the position of a person who has a dangerously small knowledge of gold so fear jumping in, but I'd like a punt,.
3. Icarus said...
When Paulson and the Fed put this $75 billion scheme together many said it was smoke and mirrors and that it would backfire because it would be seen for what it was. Paulson had been reading Einstein, who said that you could alter the location and velocity of money by observing it from different parts of the universe, and that if that universe is infinite and unbounded you can create money at any point without anyone noticing.
4. sold 2 rent 1 said...
planning4acrash,
If gold corrects down to 700-730 then it is a good buy with sterling so high against the dollar.
After this correction I see gold stocks (HUI) gaining 50% or more in a year
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