The markets are witnessing a meltdown globally. Whether this bear market trend sustains or is it a matter of few trading session before the bulls ride back, would depend on how the US sub-prime mortgage saga unfolds.It would very premature to comment on the full impact of the sub-prime mortgage story at this point but fresh inroads into the mess clearly indicate that it is far from over. Couple it with the yen carry trade forward positions against the USD and we have a situation in our hands. If the yen is able to reach 117 with sustained levels against the USD, then the market might just start to tumble with greater intensity and acceleration.
Keep the fingers crossed and watch out for more on the story in this section.