RBA Slashes Rates!
Tuesday October 7, 2008
The Reserve Bank of Australia slashed interest rates on by 100 basis points in an emergency cut. This action followed a very volatile day for all global markets.
Risk aversion was at an all time high. The US stock market closed down only several hundred points after a wild day where at one point, it was actually down by 800 points.
The Yen roared against all global currencies as the global carry trade continued to unwind.
Could this be the start of a global easing? Rumors are pointing to the Fed and an emergency rate cut of 100 basis points. Not that it will really help mind you. The rabbit hole in the US banking system goes much farther than anything a little rate cut can fix.
Amazingly, the dollar is benefiting from this de-leveraging that is taking place globally. Stay tuned, the real show is yet to come.
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Risk aversion was at an all time high. The US stock market closed down only several hundred points after a wild day where at one point, it was actually down by 800 points.
The Yen roared against all global currencies as the global carry trade continued to unwind.
Could this be the start of a global easing? Rumors are pointing to the Fed and an emergency rate cut of 100 basis points. Not that it will really help mind you. The rabbit hole in the US banking system goes much farther than anything a little rate cut can fix.
Amazingly, the dollar is benefiting from this de-leveraging that is taking place globally. Stay tuned, the real show is yet to come.
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