Minutes of the MPC meeting were unanimous in cutting rates. Hence markets believed further rate cuts would follow as early as February. Rates may then fall to 4% by the end of the year. Let’s hope not. In quarter 3 … Read More

The impact of the subprime crisis around the world leading to humongous writedowns by Merrill and others defies belief. The quantum of the issue seems unbelievable. Alan Greenspan in the “Age of Turbulence” provides some insight. (p233). “Of the nearly … Read More

SIV’s structured investment vehicles are investment “vehicles” structured in such a way as to be off-balance sheet entities but operated by banks and asset managers. They invest in bonds or CDO’s backed by mortgage and other debt. At the high … Read More

The Governor of the Bank of England killed hopes of an early rate cut this week saying the rate will not be set to “insulate the banking system from the re-pricing of risk.” “The current turmoil in the financial markets … Read More