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| A primer for July 14, 2008 market trading |
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| Sunday, 13 July 2008 | ||||||
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Tomorrow is going to be an interesting day in the financial markets. It might just be a day that goes down in the economic history books.
The big story? Freddie and Fannie of course, the cornerstone for the leaning tower of derivatives we call an economy. The $5 trillion (yes, trillion) in mortgages accounts for a huge chunk of the $110 trillion derivatives market that was built up using mortgage debt as collateral.
If Congressional comments about Indymac caused depositors to "run" for
the money, then today's late-Sunday Treasury plan should be like a
drop-kick to the entire financial system. Not just the banks, but the
investment houses, mutual funds, money markets. In the best case scenario, the dollar might be the hardest hit casualty. When that's the best case, I won't even go through the depression necessary to imagine what might really happen.
Obviously this is going to be the big news story of the day, so hopefully my alarm clock gets me up early enough to catch the close of overseas markets. I'll be digging deep for the underground financial news in the never-ending quest to find truth in a market of lies.
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| Last Updated ( Monday, 14 July 2008 ) | ||||||
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