Sunday, August 19, 2007

CDOs problems are not over

Stockmarkets in America and Europe have rebounded strongly, following the cut in the discount rate by the US Federal Reserve Board. The Asian stockmarkets are likely to follow.

The experts told me that the CDOs problems are not solved by lower interest rate. If more hedge funds get into trouble due to the CDOs, the stockmarket may fall again.

This trend has to be watched. Be careful.

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