Crisis Diary as it unfolds ….

01-DEC-08 to 07-DEC-08: The saga of bailout nation continues …

A pretty dull week I guess, no sensational hot news. Friday’s employment numbers from US (533,000 new jobless claims) were as dismal as they could be, market rallied 4% on the same day. I guess that was market’s way of saying F*ck you bad news, I am going up anyway.

US Auto industry is almost certainly getting a bailout, a massive stimulus is lined up. I am curious to see how USD reacts to all this. Markets are all ga-ga over proposed stimulus.

Stefan karlsson mentioned an interesting Keynes’ quote on his blog,

“If the Treasury were to fill old bottles with bank-notes, bury them at suitable depths in disused coal-mines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of repercussions, the real income of the community, and its capital wealth, would probably become a good deal greater than it actually is.”

Interesting, eh?

Keeping finger crossed, waiting to see what happens next ..

Crisis Watch:

TED Spread: 2.18
S&P: -2.93%
VIX: 63.64

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December 8, 2008 - Posted by | Weekly News | , , , ,

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