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July 25, 2008 7:42:24 AM CDT

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One Unrivaled Market Force: Vacation

Posted Aug 25, 07 6:19 AM CDT in World,  Business 

(Newser) – The FT leads with a prediction that market volatility will decrease over the next week for a simple reason: everyone's going on vacation. Major decisions by banks, hedge funds and mortgage lenders will be on hold as the financial world bails New York, London and Frankfurt for the end of the summer season.

Markets ended in positive territory yesterday and exhibited far greater calm than expected. The calm should last at least until Labor Day, when the big banks will at last have to confront what to do with the $300 billion in unsold loans they're holding as a result of the August credit crunch. Until then the financial world should enjoy a few days of respite from recent chaos.

Source Financial Times (UK)

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erer)   (Associated Press)
A stock dealer speaks on his phone in front of a German Stock Index (DAX) display at the stock exchange in Frankfurt, Germany, Friday Aug. 17, 2007. European stocks rebounded Friday after the U.S. Federal...   (Associated Press)
A pedestrian glances at a digital stock price display in Tokyo, Monday, Aug. 20, 2007. Japanese stocks rebounded Monday, tracking Wall Street where shares rose at the end of last week after the U.S. Federal...   (Associated Press)
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credit crisis  • hedge fund  • finance  • bank  • markets  • vacation  • loans


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