Weekly Market update -Dec 15

We got some excitement in the markets this week -the Fed announced an interest rate cut on Tuesday, and the market tanked! The next day the Fed announced another attempt at a sub-prime/credit fix, and the market took off, then it tanked again! On Thursday and Friday we saw more selling -it was not a good week for the markets (looks like my predictions last week for a weaker market came through!)

Every week it seems we get more news about sub-prime and credit problems; this problem just isn't going away. Citigroup shares continued to fall, along with Washington Mutual, Bank of America, and other financial companies.

The US Dollar rose significantly this week. Interestingly we also saw the price of Crude Oil rise to over $90 again. Bonds continued to fall, reflecting fears of inflation and indicating higher long term interest rates.

Going forward, it seems we are at a crossroads again where the market could rebound from last week's selling and give us a year end rally, or we could see some more selling back down to the August lows again. No good indicators of direction at this point -next week we should have a better idea. Next week is also expiration week for Options & Futures.

Market News:
U.S. Stocks Decline as Fed Fails to Assuage Recession Concern
U.S. stocks seen rocky next week as investment banks report
U.S. Housing Crash Deepens in 2008 After Record Drop
Overview: Central bank action fails to convince

Citigroup Rescues SIVs With $58 Billion Debt Bailout
Money-Market Rates Fail to Respond to Bank Measures
U.S. November Consumer Prices Rise More Than Forecast
Greenspan Says Recession Odds Are `Clearly Rising'
Dollar Rises to 1-Month High Versus Euro, Yen on Inflation, Fed
Energy and agriculture up on robust demand