Wednesday, October 8, 2008

NY Market Keeps on Falling – Nobody Trusts Anybody

New York Markets Plunge Despite Hint of Rate Cut

The latest news on the fate of the Dow Jones which continues to fall, regardless of what has been promised and by whom. The situation has been allowed to rage so far out of control before being brought to account nobody can say where the "chips" will fall in the end, so investors of all sizes and shapes are running scared. The bottomline, according to one observer is that, quite simply, there is no trust. Or as he put it: "Nobody trusts anybody." A complete lack of ethic in banking, now support by government, seems to have thoroughly soured the market. Even the thought of a rate cut doesn't seem to inspire much confidence

Posted by indiablue19 @ 10:44 AM (390 views)
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2 thoughts on “NY Market Keeps on Falling – Nobody Trusts Anybody

  • mark wadsworth says:

    Base rate cuts are pushing a piece of string.

    There is a market interest rate for lending to mortgage borrowers, businesses etc, which is basically expected inflation rate plus (say) two percent plus risk premium.

    Ergo, the market rate in the UK, even for a total secure borrower (yeah, right!) is about 7%.

    Q – What reason is there to assume that banks would lend money at anything less than 7%, even if they can borrow taxpayers’ money interest free?

    A – None.

    Here endeth.

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  • Eternal Sceptic says:

    In terms of the above paragraph, it seems to me the governments are giving a gold stamp of approval to the total lack of ethics in the banking and financial sector.
    They sure as hell do not have my approval. The mattress looks better by the moment. I might even have to buy a rapidly depreciating house, just so I have something left at the end of the day.

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