And That’s The Week That Was: 1.11.08

January 14, 2008 |

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Attached/linked please find And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended January 11, 2008.  Enough already!!!  Just when you thought news from the financial world could not get any worse…the staggering write-downs at major financial institutions continue to expand as do the needs for even more capital infusions from our neighbors in the Middle East and Asia.  (That short-term fix can’t be good long-term, can it?)  With more and more analysts predicting recession, Bernanke made a pretty forceful statement that the Fed stands prepared to act to avoid the “inevitable” downturn.  Bank of America took steps to become the nation’s largest mortgage lender (is that a good move these days?) and more rumors about financial services consolidations also surfaced.   The markets encountered some serious volatility, though ended the week on a very sour note.  By true definition, we are now experiencing a “correction” from the October highs (duh!).  Earnings season kicked off on a decent note (thanks Alcoa), though all eyes are on next week’s calendar as many of the major financial players (Merrill, Citi) are scheduled to report.  Virtually all predictions have been incredibly negative.  (Hopefully, we will experience a “sell the rumor, buy the fact.”) Coming up in the week ahead:  Retail Sales (Tuesday), PPI (Tuesday), CPI (Wednesday), Fed Beige Book (Wednesday), Housing Starts (Thursday), Leading Economic Indicators (Friday)

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