Monday Blue

It's Thanksgiving week for the American. Market volatility is expected to reduce, and traders would be facing with thin market throughout the end of this week. Since Singapore no longer provide NST Interactive for free (except TODAY), have to find other sources of newspaper to read. Saw this interesting article from India Daily: Fed will raise rate starting March 2007 – US Dollar gets ready for a rally

Regarding the article above, hmm, not sure what to think of it currently. But, my instinct is telling me that Fed will not increase current rate, due to political reasons (Republican/ Democrats). Too early to tell now, will have to wait and re-evaluate the situation in next year, January 2007.

After i read this article, Housing: The Riddle of Rates and Prices, makes me thinking of this matter too. No matter what, there is still a strong correlation between the price of housing vs the interest rate.

This few week, i had been reading stuff about Corporate Governance, Whistle Blowing and Combined Code, which are all about accounting. Let me introduce you to something for the finance industry, Plunge Protection Team ensures the stability of the financial markets, prevents liquidity problems, and ensures that stock market hiccups do not cause bank runs. :D

For me, corporate governance is basically for a micro-economic view, as it is all about the way company are directed and controlled for a corporation. Plunge Protection Team is more of a macro-economic view where it involve the danger of monetary inflation being used as a tool to more or less directly support stock market prices.

Just for fun: over in the other side of globe, this is really really funny... this is how they use economy surplus: Free Viagra spices up life in Brazilian town