World stocks falls - Carribean grows

[italkcash]

Stock markets all over the world, started by a negative trend in Europe fell, and got heavily dumped as the US market opened with even more negative news, mostly due to consumer confidence and purchase price.

But in the small Caribbean island group stocks jumped today, with only a few minor losses such as CWKN.

Currently their biggest bank is Republic Bank (Grenada) Limited, maybe this its share value will keep going sideways at least while the rest of the world is in financial turmoils.

[managerbj23]

At the moment one can maintain that this event was caused by the Federal Reserve System, which in 2001 considerably reduced the price of borrowing in dollars. Low credit rates started the «real estate» boom, which led to the significant growth in profits of financial institutions, especially banks, involved in mortgage lending.

Consequently from 2002 to 2005 the prices of their stocks were growing steadily. The situation began to change in 2006 when the trend of borrowing price growth both in US dollars and in Euro created unfavourable conditions for the mortgage holders. As a result the mortgage credit excess induced the financial crisis, affecting primarily those banking institutions, which had actively credited or purchased mortgage notes and certificates. Mature stock markets began shaking with fever. Lots of investors started to dispose of banking and financial sector stocks. On the one hand, securities of such companies as Countrywide Financial Corporation, Ford Motor Credit Company, Merrill Lynch & Co., Inc. Citigroup Inc., became the most traded stocks. And the least stable in terms of price dynamics, on the other hand. The stocks of European banks were in a similar situation. As a result it is the price fluctuation of these securities that has recently caused significant changes in the index dynamics of the world leading stock exchanges.