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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.27-0.2%Nov 21 4:00 PM EST

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To: TobagoJack who wrote (15249)3/12/2007 12:27:29 PM
From: elmatador  Read Replies (2) of 217986
 
"Market turmoil also matters because financial services play such an important part in many developed economies. In America the industry makes up more than 30% of profits. ... Last year was the best ever for the five biggest firms, which made combined profits of more than $30 billion.

But when markets started to fall on February 27th, the shares of investment banks fell faster than the rest (although they also recovered more sharply on March 6th). Rising markets tend to be good for banks, boosting the profits of their trading arms and encouraging share and debt issuance, both of which earn fat fees; in falling markets the reverse applies. In addition, the turmoil in the subprime mortgage market, and the associated tightening of credit standards, may itself damage growth prospects, by hitting house prices and thus consumer demand

economist.com

General Motors forgets about making cars and have to take charge of almost $1billion to cover bad mortgage loans on its subsidiary, Residential Capital says Lehman Brothers.

As you can see the developed countries live off finacial markets. So this collapse thing is their problem.

Look to the Brazilian Real. Is back to where it was in 27th February again even though the Central Bank bought a few billion more.

Decoupling is a reality.
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