- The co-ordinated actions by Governments and central banks seem to be working. The credit markets are thawing and now we can get back to worrying about a recession.
- The Bank of Canada lowered interest rates by 25 basis points this week. The Bank hinted that “some further monetary stimulus will likely be required”. After hemming and hawing, the major commercial banks mirrored the Bank of Canada’s move and reduced the prime interest rate to 4%.
- The other major news story is the rapid fall in the Canadian Dollar. The loonie dropped 6% in value against the US dollar this week alone. Some economists are calling the rapid dive “loonacy”.
- William Bernstein cautions against trying to outguess the market.
- The Wealthy Boomer wonders what happened to gold’s role as a refuge at times of crisis. Jane Bryant Quinn questions the wisdom of owning a few gold coins as insurance policy against a currency collapse.
- Thanks to Credit Brain for drawing attention to an essay writing contest open to all Grade 12 Canadian High School Students. Students can enter by writing an original essay on “Why is managing my money an important skill?” There are a number of generous prizes on offer.
- Frugal Trader highlighted Warren Buffet’s recent column in which the Oracle counsels buying US stocks.
- Money Grubbing Lawyer recounts his experiencing opening a Questrade account.
Around the Personal Finance Network:
- Blunt Money lists the things that everyone should know about personal finance.
- Clever Dude checks out Tip’d, the latest kid on the block for sharing personal finance content.
- Squawk Fox takes a look at inverse ETFs that investors can use to hedge their portfolios.
- Mr. Cheap on whether the current market drop is bad, good or irrelevant.
- Money Ning offers some tips on not losing sleep in a bear market.
Note: Thanks to everyone who entered in the One thousand posts, One million visits giveaway. If you haven’t done so already, you have until Friday, October 24, 2008 at 8 PM EDT to throw your name in the hat.
