Sub-Prime fears resurface......But for how long
Chuck Prince, former top honcho at Citibank Resigned after larger then expected write-offs were necessary in the Sub-Prime mess. This follows a similar fate of Stan O'Neil at Merril last week. Is there more losses on the horizen? Who is next, Bear, Lehman, or the rumour of the day Goldman? Well I am starting to think that the worst is behind us on the Sub-Prime situation. Today there was hardly a reaction to the Citibank announcement. U.S. dollar interest rate futures were actually down on the day, with the Dollar little changed. It seems the market has built in the bad news and is now looking at the positive (Friday's employment number's?). So as long as no new and drastic news comes out I think that we may have seen the bottom of U.S. rates for a while. I am not attacking this market aggressivly but layering into flatteners in Mexico and Argentina.
Good Luck and Good Forex Trading.
Labels: Markets
posted by Banker at
Monday, November 05, 2007
2 Comments:
Hey Banker,
Hope the week was profitable for you - what is your view on subprime et. al. in the rearview mirror - after the week that was?
energyecon
I think that the Sub-Prime mess will work itself out. More bad reports from the major banks/investment banks to come, but I think that is expected. I do feel however that Stocks are in for a bumpy ride and that the U.S. economy will slow in the coming months.
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