Forex Blog: Currency Trading News & Analysis.

July 17th 2008

Credit Crisis is “Ongoing”

Who’s familiar with the "song that never ends?" How about the credit crisis that never ends? Only a few months ago, the talking heads were trying to convince us that the worst of the credit crunch had already passed, and that analysts had overestimated the amount of the debt that would ultimately need to be written down. Congress was congratulating itself for its economic stimulus plan, and the Federal Reserve was patting itself on the back for engineering an increase in liquidity to the financial markets. Then, without warning, round two (or three, depending on how you count) was ignited as FANNIE MAE and FREDDIE MAC- which together anchor America’s sprawling mortgage sector- announced financing problems. Commentators are already talking about the possibility of a government bailout. Buckle your seatbelts; it’s going to be a bumpy ride. The International Business Times reports:

Continue to monitor this situation, paying particular attention to whether the bigger investment banks are still lending to customers. Any shutdown in the system would be extremely bearish for the Dollar across the board.

Read More: U.S. Financial Market Turmoil Continues to Beat Down Dollar

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Economic Indicators, US Dollar | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2018 Forex Blog.org. Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.