All eyes are on where the US interest rates will head as Ben Bernanke and his FOMC team meets tomorrow. The stakes are high that the Fed will keep interest rates unchanged despite the fact there are optimists in the market which believe that Ben and friends will decide to cut interest rates as early as Sept 18 to bring some needed optimism to a market that is as volatile as a YOYO.
Reasons supporting a cut in I/R are many:
- Fears that the crashing housing markets and a rising interest rates are signals that a recession is looming.
- The continue worsening to the sub prime mortgage market
- Slowing of US job growth and declining consumer spending
- Downgrading of credit ratings of Bear Stearns
Reasons supporting a stay in I/R:
- Rising oil prices that are causing inflationary risks
- The green back at a all time historic low
Second2none Gut feel: A stay in US interest rates at 5.25%.
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C-D-O the new “IN” Kopi Tiam Talk
For those who haven’t been able to catch a snippet of the CDO Galla, it is real time to update yourself before the uncle selling kopi starts laughing at you.
in which many sub prime mortgages are packaged ( in other words, mortgages similar to your Hougang, Ang Mo Kio, Geylang Condos and housingCDOs are securities , but in the States la, who care about Singapore?!)
Why we care?
Our dear friends engaged in FSIP job might be concerned over the extra work they have to do since the funds or banks they are auditing might have exposure to the CDOs. The prices for CDOs have tumbled because of the rising default in the US sub prime market.
What extra work?
Your managers might be racking their brain inspecting whether their banks or funds are making the necessary mark to market losses adjustment in the near term. Who kena? We la… so it is better to know a bit to prevent being tekan without knowing y?!
Our friends at various funds jobs … Take Care!
As for the rest of those who are starting interim bank audits soon, you will be with them soon. Ha!
Source: The Business Times
--> news update, brought to u by urs sincerely, TECHNO CAT.
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