IS IT TIME TO PANIC?
by Egon von Greyerz
The question above is clearly justified. Especially after the Fed has cut the discount rate by 1 ¼ % in the last ten days. This is undoubtedly panic action. And the cut is not due to the fall of the stockmarket. The reason for the cut is in the statement issued by the Fed on 30 January: “Financial Markets are under considerable stress” . This statement is Fed speak for the fact that the financial system is fighting for survival.
Derivatives – Financial Weapons of Mass Destruction
We forewarned investors already in November and December about the looming problem of Credit Default Swaps (CDS), a
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