Thoughts on Markets

Wednesday, October 01, 2008

International Financial Crisis & Economic Reports

Financial crisis: Ireland’s banks are rescued

By Ambrose Evans-Pritchard
Last Updated: 12:47PM BST 01 Oct 2008

Ireland has launched a full-scale rescue of its financial system, issuing a state guarantee worth €400bn (£316bn) to cover the key liabilities of its biggest banks and mortgage lenders.

Full Article Here

Wealthy investors hoard bullion

By Javier Blas in Kyoto

Published: September 30 2008 19:00 | Last updated: September 30 2008 19:00

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen.

Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.

Full Article Here

They would have to use the term "hoarding." Actually, should not the proper term be either "investing" or "saving" in gold. Sounds more like a governmental term to say shame on you wise citizens.

Rumors abound about a coordinated cut of interest rates by central banks. This is evidence of the spread of fear among the elite politicians and bankers. The only answer they have is more intervention to inflate the paper currencies and encourage greater borrowing. A little (hyper) inflation is much better to them than recession or depression. The ECB meets tomorrow. What will happen? Hold onto and obtain more gold and silver. The bullion banks are in trouble over selling of their gold.

Demand must be slowing for the Asian tigers. India's production has slowed and China's has not picked up post Olympics.

Crude was back up some 4.27 to 100.64 yesterday after the drop on Monday. The Case-Shiller home price index for July dropped 0.9% and was lower than June's drop of 0.5%. This represents a drop of 16.3% year to year. Not good for home prices. The inventory of unsold homes continues to rise.

The Conference Board Confidence for September rose to 59.8 from August's 58.5. I wonder the source of the confidence. Perhaps, it was the breather in prices at the pump.

The failed Bailout, I mean "Rescue Package" (Must be politically correct; however, a rose by any other name still has thorns.) is due to be voted again on Thursday. Will it pass then?

It is interesting to note that the "Rescues" to date are already some $900 Billion and the financial industry is still in deep trouble. Will another $900 Billion bring them above water? I think not!

Isn't it great to have a Lord who is in control and working all things for His glory and the eventual good of His people? I know that reliance upon Him gives His people great peace and joy amidst storms of all types. Praise Him daily for His blessings!

Best to each, Doug


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