Bonds/Interest Rates

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

Global inflation levels have been held in check during the emerging markets boom as China in particular has exported deflation. Will it be different now?

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

Skyrocketing food prices pushed China’s monthly inflation rate to the highest level in a decade in July.

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

Notwithstanding consideration given to the global credit crunch, the RBA statement of monetary policy shows the central bank is even more worried about inflation than it was earlier.

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.