Enter 2008

Its been a frantic beginning to the year 2008. We've seen the sub-prime crisis boil over to greater heights than previously imagined. The big investment banks including Merill Lynch, Citibank and UBS have lost several billions of dollars in bad mortgage deals. Its hard to imagine the smartest of people in the world in the helm of these banks entering into such business models. Its now threatening to put the world markets into a frenzy, with the volatility forcing millions of investors out of the stock markets. And if this was simply not enough, one of the biggest multi-billion dollar fraud by a futures trader in Societe Generale was just uncovered.

The oil prices hit a record high of $102, but fell within a short period to $89. With all the financial crisis and weak outlook, the threat of global economic recession is probably higher than ever before. But just in the nick of time, the Fed diffuses the concerns with interest rate cut and Bush announces his relief package for the economy. With the Indian and Chinese economies unperturbed in terms of growth, it remains to been seen if the stability continues until the end of this year.