January 25, 2008 |
Attached/linked please find And That’s The Week That Was…the Brounes & Associates market/economic commentary for the week ended January 25, 2008. Is the recession spreading abroad? Could it possibly be nearing an end? Do our domestic markets follow global ones or do theirs follow ours? Does the Fed truly have the power to impact the markets (and should they)? Can a bipartisan Congress make a difference in slowing (ending) the mortgage fiasco and related credit crisis? Is anyone even paying attention to quarterly earnings? The answer to these (and other questions) is a resounding “I DON’T KNOW???.” Domestic traders were greeted this (shortened) week with major sell-offs across most international markets on fears that a US recession would spread across the world. From the UK to France…from Germany to India…from Hong Kong to Japan…from China to Indonesia…from everywhere to the United States…that’s how interconnected the global economy and the markets are these days. The Fed conducted its first inter-meeting fund rate cut (75 bps) since the aftermath of 9-11. Republicans and Democrats actually agreed (somewhat) to a stimulus package. And investors did not know exactly how to react as revealed by the immense volatility and price swings during the week. Perhaps next week will be more subdued (then again, check out the list of economic releases below). Rest up…the fun continues Monday.
Coming up this week: New Home Sales (Monday), Consumer Confidence (Tuesday), GDP (Wednesday), Fed Policy Meeting Statement (Wednesday), Personal Spending (Thursday), Unemployment Rate/Nonfarm Payroll (Friday), ISM – Manufacturing (Friday)crash, mortgage crisis, recession, subprime mortgages