/24-7PressRelease/ - January 30, 2008 - Recent reports have revealed that the stock market is hoping for signs that the economy is surviving the problems in the financial sector -- and that the Federal Reserve could come to the rescue if it's not.
According to a source close to the Lisbon based firm, Unicorn Ventures researchers are of the opinion that investors are slowly getting a better picture of just how much in risky and deteriorating debt securities the world's major financial institutions are holding.
Unicorn Venturesâ Robert Shaw reportedly stated that Wall Street expects banks' portfolios to lose at least $20 billion in the fourth quarter, following announcements of anticipated write-downs of mortgage-backed securities and other debt instruments.
Investors have been bracing for fourth-quarter write-downs, but it seems the amount was larger than many were prepared to hear.
The combination of shaky financial markets and inflationary triggers has worried investors that the Fed's hands are tied.
Unicorn Ventures analysts apparently stated that an interest rate cut could send the dollar down even further, but that keeping rates where they are could translate to even wider losses for the world's major financial institutions.
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