‘Buy on the rumour, sell on the news’ is the classic definition of a weak market. So the US stock market’s reaction to the passing of the US bailout is a worrying indication that further problems may lie ahead. On 19 September, the Dow rocketed to 11388 as the bailout was confirmed. Last night, as […]
Chemicals and the Economy
5 key questions about the US bailout
The proposal now before Congress to authorise the spending of $700bn to bail out Wall Street contains just 849 words. It avoids the need to go into further detail via its suggestion that the Treasury Secretary should simply have unlimited authority to act as he ‘deems necessary’. But 5 key questions are bound to be […]
‘The biggest bailout in US history’
Does the US Treasury read the blog? Just hours after the chart below was posted, rumours began to circulate of a major government initiative to try and stabilise financial markets.
Policymakers turn more downbeat
There has been a noted change of tone from leading policymakers in the past few days. Gone is the jaunty confidence that the world economy is ‘fundamentally sound’. This has been replaced by a sense that debt market problems may have a wider impact than first expected. US Treasury Secretary, Hank Paulson, typified the new […]
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