The boom was a phony. It was a like a polished flim-flam artist who flattered the middle classes with cash and credit – only to pick their pockets. Now they’re facing a serious recession in the worst financial shape of any generation in history.

Equities have stabilized and traders are becoming less risk averse, reducing the need for a large follow-up move by the Fed.

Canadian headline and core CPI measures are expected to remain below their inflation targets; the BoC is anticipated to cut rates again to keep aggregate supply and demand in balance and to return inflation to target over the medium term.

The big guns came out on Monday. Mr. Market shot down almost every stock in the entire world. He would have caused U.S. stocks to crash and burn too, but it was a holiday behind the American lines.

If we are truly in a recession as many economists argue, then the dollar could actually strengthen. Kathy Lien notes that, of the seven major currencies, the safest one to park your dollars in, is USD/CAD.

Despite the widespread media attention and emotion running through these markets, trading has not presented many opportunities.

On Thursday, the National Association of Realtors is expected to report that existing home sales slipped to 4.95 million -- the lowest reading since record-keeping began in 1999.

Oh say does that share-strangled banner yet wave, O’er the land of the free lunch...? We’re talking about our own “Crash Alert” ensign, the one in black and blue colors with a skull and crossbones on it. The poor flag is a bit tattered. A bit faded. A bit lonely.

The volatility in the financial markets caused panic at the Federal Reserve, resulting in the first intermeeting rate cut since 2001.

Strong CPI results could propel AUD/USD higher as the markets may ramp up speculation that the RBA will move to hike rates in February, while most other central banks are reducing interest rates.