A suggestion of relative calm emerged around the region in a period marked by a strong rally in Hong Kong that might augur well. But markets further east suggest the year-end festive mood may be short-lived.
The role of central banks is not to manage housing and other markets but to manage liquidity, and according to rules - not on a chairman's absolute discretion. The costs of the US Federal Reserve's unrestricted power are mounting and more instability lies ahead in a world where financial disorder has no boundary.
Bernard Madoff's fleecing of the rich and famous in his apparent US$50 billion swindle, along with supposedly savvy investment firms, exposes America's elite as feckless incompetents who could not spot the wolf within their own sheepfold.
An end-of-week sell-off on Asia's stock markets on the refusal of US legislators to nod through a US$14 billion assistance package for the country's automakers took some of the shine off a positive week. Further upsides beckon, but it would be folly to believe the worst is over.
The Mumbai terror attack last month has led to indefinite postponement of high-level talks aimed at improving the near moribund trade between close-to-bankrupt Pakistan and India.
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