Economy Watch

During the last quarter of 2008 and the first quarter of 2009, we have experienced an unprecedented tsunami in the world wide financial markets.

The excesses of the housing bubble, the widespread securitization of subprime mortgages, the gross underestimation of risk of collateralized debt, and the massive leveraging of the US financial institutions have led to systemic issues which will take some time to unwind. The massive world-wide central bank and government interventions have propped up the failing banks and have started to thaw the credit markets.

While we may have averted Depression 2.0, the road to economic prosperity is a long one, and will be led by the innovation, competitive spirit, and drive of US businesses.

Equity Markets
  • S&P 500
    S&P 500
  • FTSE 100
    FTSE 100
  • NIKKEI 225
    NIKKEI 225
  • Hang Seng
    Hang Seng
  • BSE Sensex
    BSE Sensex

Equity Market Correlations
Historically, developed markets and emerging markets have been fairly uncorrelated. Ever since the market crash in the Fall of 2008, developed markets and emerging markets have started to move together. This increased correlation is a sign on the greater inter-dependence between the world economies.

  • Correlation between S&P and Hang Seng
    Correlation between S&P and Hang Seng
  • Correlation between S&P and BSE
    Correlation between S&P and BSE
  • Correlation between BSE and Hang Seng
    Correlation between BSE and Hang Seng

Credit Markets
  • LIBOR and FED Prime.
    LIBOR and FED Prime.
  • 30 Year Mortgage Lending Rate
    30 Year Mortgage Lending Rate
  • 10 Yr Treasury Note
    10 Yr Treasury Note
  • 30 Year Bond
    30 Year Bond

Credit Risk
  • LIBOR OIS Spread
    LIBOR OIS Spread
  • TED Spread
    TED Spread

Economic Indicators
  • Unemployment
    Unemployment
  • Consumer Price Index
    Consumer Price Index
  • Consumer Consumption
    Consumer Consumption
  • Consumer Credit
    Consumer Credit
  • Public Debt
    Public Debt
  • Budget Balance
    Budget Balance