BoE’s King says, that UK faces DEFLATION risk next year … AUTSCH!!!
If market starts to play this, equities will suffer even more and Bonds will explode to the upside …
Tough TIMES ahead …

The Bank of England reduced rates today by 150(!!!) bps … a RECORD CUT.
ECB and SNB did 50 bps …
In a non-concerted action … they are all THAT independent …
Markets still sold off as it is regarded as hectic, too late (BoE) or NOT sufficient (ECB).
Anyway … as the crisis is far worse […]

S&P, Dax and Eurostoxx traded a new correction high …
and by doing so, all 3 fulfilled their minimum targets …
Now it will be interesting to see, how markets fare over the next days.
Reactions to OBVIOUS things like Freddie Mac and AIG losses make it more likely to give the command back to the bears […]

Not much to say …
holiday around the globe and FED, ECB and BoE spreading their “wisdom” this week …
YAWN
The only … possible, but improbable … surprise could be AUSTRALIA … they COULD … L O W E R rates
All the rest should stick to the current levels …
ECB sounding hawkish, […]

Unfortunately, I encounter since yesterday major electricity and internet outages
Hope to be back up soon … thanks for bearing with me!
Today’s news … ALL negative …
- BoE sees inflation for several(!) quarters above target … risk for LOWER growth … recession possible.
- Moody’s again looking at bond insurers … BE AWARE!!!
- US foreclosures […]

Markets are hesitating to move away from the current level …
So far May hast produced twice the “1-day-squeeze-2-days-sell-pattern” …
Tomorrow will be interesting as we get our deserved weekly candle …
In the S&P, 1400 is the watershed … as last week opened here …
A close below 1400 would call for more downside … the financials […]

The Americans were only thinking about it …
The Bank of England might actually do it …
Today’s FT has the following …
“The credit crisis is so severe that dozens of smaller lenders could be forced to stop offering new mortgages unless the government intervenes, leading bankers told Gordon Brown on Tuesday.
The stark warning, issued […]

We are still stuck … Market can’t rise, doesn’t want to fall …
BoE lowered rates and ECB kept them unchanged … as expected
WalMart guided higher … as Americans buy on the cheap as they face problems.
Dupont guided higher … on exchange rates.
Intel got upgraded …
At least something.
But as problems persist, highlighted by especially Goldman Sachs […]