Tag Archives: IWF
The mercury is climbing, blossoms are bursting out — so does Wall Street finally get to celebrate a springtime of its own? For eight long months now, a ferocious credit crunch, unprecedented since the Great Depression, has trapped investors in a deep freeze. Not only stocks and real estate, but even some of the (reputedly) safest bonds and money market instruments fell victim to the Arctic blast.
Happily, I’m detecting hints, here and there, of a thaw. It’s taking a lot longer than I had hoped, but we will see the end of this new Ice Age. As a balmier climate sets in, we can look forward to healthy markets again — and a return to the steady, consistent profits we enjoyed from 2003 to around mid-2007.
I’m not privy to the deliberations inside the walls of the Federal Reserve. But I’ve got a hunch about the central bank’s policy meeting next week. Ben Bernanke could silence a lot of his critics — and do the financial markets a big favor — with one simple stroke.
Let the healing begin! Stocks responded enthusiastically this week to the Federal Reserve’s dramatic half-point rate cut, with all the major indexes closing sharply higher. But the most encouraging news came from an obscure little indicator that measures investor anxiety.