BUMPY WEEK
Posted by Jordan Crouch on January 28, 2008
-The French Bank Societe General lost $7.9B via a rogue trader. All the details are still coming out, but what is certain is the incident affected the overall market.
-After a bad Friday two weeks ago, coinciding with Societe General’s troubles, world markets began declining, prompting the Federal Reserve to drop the Fed Funds rate 75 basis points during an unscheduled emergency meeting.
-US Markets buoyed slightly after the rate drop but are still down 10% year to date.
-The 10 Year Treasury Yield has also been pulled lower to 3.57%, down 30 basis points from Jan. 1.
-This week look for a sign from the Fed’s meeting on Tuesday of the state of the economy. Another interest rate drop is expected. Also tune into the President’s State of The Union address tonight at 6pm.
