Did any market participants out there not see this coming? After taking an earlier tough stance on the idea of bailing out any more firms, the Fed has decided to give AIG a huge loan to the tune of 85 billion dollars! These bailouts are growing larger by the week! The government has taken an 80 percent stake in AIG to secure their investment.
As alarming as it should be that the US Government is extending itself and taxpayers into the insurance business, the markets seemed to be somewhat calmed by this move. Carry trades are looking well supported, but still volatile.
The US Dollar, which should be taking on major damage with all of this news, is surprisingly hanging tough over all. There have been some volatile jumps over the past 48 hours, but it is overall showing a steady hold on the chart. Considering the type of economic damage that is everywhere right now, it is a miracle that the dollar hasn’t taken a large fall.
The currency markets should continue to be volatile for the rest of the week, with possibly, yet more surprises on the horizon. Practically all the central banks are on high alert with the panic that is circulating through all markets. Keep watching those charts!
As alarming as it should be that the US Government is extending itself and taxpayers into the insurance business, the markets seemed to be somewhat calmed by this move. Carry trades are looking well supported, but still volatile.
The US Dollar, which should be taking on major damage with all of this news, is surprisingly hanging tough over all. There have been some volatile jumps over the past 48 hours, but it is overall showing a steady hold on the chart. Considering the type of economic damage that is everywhere right now, it is a miracle that the dollar hasn’t taken a large fall.
The currency markets should continue to be volatile for the rest of the week, with possibly, yet more surprises on the horizon. Practically all the central banks are on high alert with the panic that is circulating through all markets. Keep watching those charts!
our government must be insane balling out this company, they were given money and what they do, take there execs, on a $400 retreat with that money.INSANE ! hey lets give them anything they want we dont care if they screws millions of americans AGAIN ! what has this country come to?? it’s spelled GREED pure and simple, if i had anything involved with them I would move whatever i had into something else,, greedy people !