The one bright spot for the world economy is the continued fall in oil prices. The timing could not be better as the fall should help cushion the blow of job losses and and mortgage foreclosures from a macro sense.
There is no happy-talk from the Fed vice-chair Kohn this morning. He says the weak economy and fragile markets will likely persist for a while. He downplays talk that the Fed should seek to pop asset bubbles, a debate that has raged for most of this decade. He remains unconvinced that rate hikes can provide that function.
Markets are extremely quiet this morning with EUR/USD at 1.2640 and USD/JPY at 96.75.
