Our Market view - 2008
December 2008
The blame for the ongoing financial crisis has been laid at the feet of many culprits: greedy bankers, ignorant investors, naïve borrowers, lax regulators, indifferent governments, incompetent rating agencies etc. Central banks have also come in for hefty criticism, largely because of an accommodative monetary stance in recent years that has significantly expanded the global money supply.
November 2008
October's co-ordinated central bank initiatives and the effective nationalisation of commercial banks in much of the developed world have encouraged hopes for a resolution of the global credit crisis.
August/September 2008
The demise of leading US mortgage companies Fannie Mae and Freddie Mac in the middle of July was seen by some observers as a watershed in the developments following the collapse of the domestic housing market.
July 2008
Early June saw central banks appear to finally make up their mind about the dilemma of whether to tackle inflation and jeopardise growth or risk inflation by maintaining a relatively loose monetary policy. To judge by the most recent rhetoric from the monetary authorities, the battle to bring inflation under control seems to have begun in earnest.
June 2008
Inflation is back after a lengthy period of relative containment. In many industries, rising commodity/raw material prices are increasing production costs.
May 2008
In early April, the International Monetary Fund announced that it estimated the eventual cost of the ongoing global credit crisis at around $945 billion.
April 2008
In recent weeks, the Federal Reserve, partly in conjunction with other central banks, has sought to introduce measures to restore stability in the financial markets. The US central bank has pulled out all the stops, taking drastic action in an attempt to calm investors' jittery nerves.
March 2008
In previous months, we have mentioned the dilemma facing the US Federal Reserve, namely the policy balancing act required to adjust interest rates sufficiently to accommodate economic growth without risking a rise in inflation.
January/February 2008
Markets have continued to have a dreadful time so far in 2008, against a backdrop of looming recession in the US and persistent doubts about the solvency of financial institutions.