Archivo de noviembre/2007

New assessments on housing prices focusing in the UK property market show strong overvaluations. A recent report by HSBC foresees a similar movement in the UK property market to that going through currently in the US. The Land Registry (a very reliable source of house price data) pinpointed that that property prices fell by 0.6 per cent in October in London or 6 % annually approximately. HSBC reckons that overvaluations go as far as 30 % in the UK housing sector. HSBC is not the only institution to have offered such a gloomy picture of the housing market in the UK. Last month the International Monetary Fund (IMF) estimated an overvaluation of 40 % in UK housing prices.

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It has been a busy week with lots of Fed speakers sending messages and analyzing events. These speakers are trying to build up expectations on future Fed

The subprime crisis and the development of the structured derivative markets might be complicated for someone not following the financial press closely. The vast numbers of acronyms (CDOs, SIV,

Dollars is sliding down quickly against most currencies. The direction of the trend seems undisputed. This depreciation has been praised for long, as it helps correcting the huge US current account deficit. However policymakers worry about a disorder depreciation with sharp dollar movements. Policymaker prefer an orderly unfold of events as Fukuda verbally claim early this week in relation to his own currency:

Rumours abounded last week in relation to write offs of the main investment banks.
Main economic news were put aside by the rumourology on new write offs and unknown exposures of investment banks to murky assets. The Fed

During the second week of August 2007 some of the most prominent hedge funds suffered huge losses. Among these funds losses abounded within the long/short quant funds category. Goldman

The Fed cut rates yesterday by 25 basis points as markets has correctly priced. The statement from the Fed is clear with a few important messages. According to the statement:

a) This cut together with the previous one in September were designed to