Daily FNArena News - FYI

The crisis formerly known as subprime is reaching the status of an emergency. And as we speak, two hurricanes are brewing in the south.

Weekly musings from your editor. This week: it ain’t over till it’s over plus CommSec revises its share market strategy.

Credit problems at a leveraged prime mortgage lender and lowered expectations from Wal-Mart conspired to send the Dow tumbling 200 points once more.

What is all the damned fuss about? asks many a market analyst. US subprime foreclosures are a small proportion of a small proportion of a small market.

The current global liquidity crisis has attracted a lot of headlines but many investors may not fully understand the situation, so Danske Bank has outlined the central banks’ role in such a situation.

The Dow spent all day in solid positive territory on low volume, only to slip away at the death.

Global central banks had little choice but to inject liquidity into a rapidly freezing global banking system last week. But could this prove more harmful than beneficial in the long run?

It’s CPI week in the US and Europe. Inflationary numbers will provide an interesting dilemma. The RBA airs its thoughts today in a quiet week for Aussie data.

Wall Street gyrated wildly on Friday, ending virtually unchanged as the Fed and ECB stepped up their liquidity injections.

Central banks in the US, Japan, Australia and particularly Europe have moved to stop the credit crunch started by the subprime crunch from turning into a full-blown liquidity crisis.