Merrill Losses Top $8bn
Back in January we reported on the the huge Merrill Lynch losses. However, things seem to have gone from bad to worse, with collateralised-debt obligations of $8.4 billion, eclipsing the October 5th forecast losses of $5 billion.
Merrill Lynch reported its first quarter net loss of $2.3 billion in operation costs for six years. The credit crunch and sub-prime loan scenario has hit the bank as well as many others, with some experts believing the US and UK troubles are only the tip of the iceberg.
Loonie Optimism
Despite the troubles in the US economy, Canada has seen a strengthening currency.
The Canadian Dollar continues to rise against the USD as traders expect the interest rate difference between the two currencies to remain static.
The CAD has risen 1.2 percent against the USD since the Federal Reserve began cutting the interest rate back in September 2007.
It is expected the Bank of Canada will make less aggressive interest rate cuts going forward, due to less volatility in the Canadian housing market.
Some experts predict the Bank of Canada will cut the benchmark rate to 3.75 percent by the end of quarter one.
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