News Laden Morning, and wild week ahread

There's a huge amount of financial news this morning, and I've shared them on the panel on the right. But I thought I'd just share my thoughts. :)

Bradford & Bingley to be nationalized: reports
Looks like shortly after Freddy and Fannie have been nationalised in US, Bradford and Bingley are being nationalised in UK. (What's with this same first letter alphabet thingie for these firms? Perhaps I should come up with a W&W or A&A... haha)

Either I hadn't been kept up to date on UK news, or there hadn't been as much interest in B&B as there was in F&F. I'm not sure of the impact of this new on the GBP, but it would certainly be good to take this into consideration. Perhaps with its nationalisation, banks in UK are more comfortable with lending and liquidity issues are lessened.

There are a few items on the bailout bill:
Text of economic rescue bill official summary
Rescue bill released

Basically, the bill will be passed, and Paulson will have the authority to manage $250 billion upfront instead of his intended $700 billion. It doesn't say what has to happen or when he can use the rest of the $700 billion. I suppose some checks and oversights out in place is a good thing, because I'd be worried if he did dump all $700 billion at one shot. So perhaps, $250 billion as a first tranche is good enough for now.

The most important question would be how the markets are reacting to this. Perhaps some short-lived joy on the improved liquidity, followed by the realisation that markets are still on its way down.

Why do I say that? Well, the Fed had been pumping in loads of cash, cutting rates like mad, all in efforts to stablise the markets. This $700 billion bill (enough to wage a full fledge war) is almost a final resort after seeing all else had failed. I do think it is necessary for the Fed to act, but I think it serves to cushion the impact of the market correction, or prevent it.

That's all for now. Good luck with your trading!