Friday, March 28, 2008

Markets are nothing but a James Bond movie


It is evident that financial markets are unstable and lack liquidity. No matter how hard the Federal Reserve tries to pump in cash in the banking sector, the U.S. dollar seems to be seeing a downward turn. When after a long drop dollar does go up for a single day investors rejoice thinking 'tomorrow never comes'. It certianly looks like a bond movie to me, James Bond- Reserve Bank trying to save the banking sector and the investors - the heroine, and the slowing economy (credit losses) - villian. The only problem in the real situation is that the rescue process may take as long as a year, that is if the markets recover on consumer confidence.Comments are welcome on what others think about this.

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