I suppose the question has to be asked: what next after the events of the past week?

The National Australia Bank has cut its growth forecast for the US economy and now expects it to slide into recession in the first half of this year.

Interest rates may rise and fall, employment may jump, or slide and the economy will slow, then pick up, but for the Reserve Bank something has changed.

The share market finished at 2.30pm in preparation for the Easter long weekend, closing 3% lower at the end of the day.

Gold futures fell by a whopping US$60 overnight, stunning unwary investors into panic overdrive.

Amidst the battering the finance sector has endured in recent times, one bank received a small blessing today – Standard and Poor’s rating agency today reaffirmed the long-term financial ratings of recently merged Bendigo Bank and Adelaide Bank at BBB+/A2.

The Reserve Bank has given itself some wiggle room on interest rates that it didn’t have last month when it went all hawkish and warned that rates and inflation would remain high until well into 2010.

Despite claims by some economists that the RBA will lift rates at its May meeting, don’t bet on it (see story above).

It has taken the failure and bailout of Bear Stearns and the way that rattled world financial markets to produce the most comprehensive statement so far from the Federal Government about how it sees Australia in the midst of the worst conditions in global markets for decades.

The US Federal Reserve its key federal Funds rate by 0.75% to 2.25%, warning that downside risks remain.

The Australian sharemarket surged 4% on Wednesday on the back a significant rally in the US markets overnight.

The moves by the US Federal Reserve to drive the bailout and sale of failed investment bank, Bear Stearns; cut its market dealing rate by 0.25% and establish a line of credit for US financial markets, represents the most significant moves by the central bank to try and steady jittery markets in over 60 years.

No bloodbath but stockmarket trading was definitely edgy around the world.

The Fed’s moves in the US will have an echo here: not so much on economic activity, but on the Reserve Bank’s approach to interest rate changes

More records for gold as investors get worried about the health of credit markets, banks and the US dollar.

The Australian share market closed flat today, following another day of nervous trading as global woes continue.

Even though there were strong finishes for gold and oil and several other commodities on Friday night, traders reported a rise in contract close outs after Bear Stearns was bailed out on Friday.

The futures market was pointing to a lower opening when trading resumes here today after Wall Street’s big fall off the back of the rescue of investment bank, Bear Stearns.

The likelihood of Bear Stearns remaining independent after being bailed out by the US Federal Reserve is remote.

Tuesday night’s meeting of the US Federal Reserve was shaping up as the major factor to keep an eye on this week but Friday’s bailout of Bear Stearns, the 5th biggest investment bank, has changed that.

There have been some interesting developments occurring in the resources sector recently. Despite fears about US economic growth and whether the country has entered recession, many commodity prices continue to make all-time highs. Two in particular, gold and oil, have been gaining most of the headlines.

Make no mistake, we are in the grip of a vicious bear market. In bear markets, investors can do one of two things. Succumb to fear and ‘get out’; or be very careful, preserve capital as best they can, and be ready to take advantage of the attractive stock prices that bear markets inevitably produce.

In these turbulent times, investors need to use all of the tools at their disposal to protect their capital and find profit table trading opportunities.

The Fed’s latest move to combat the credit crunch has set off a short-covering rally in share markets, although so far it’s looking rather shaky. Yesterday it turned into another bear trap here with a savage day on the market with a 2%-plus fall.

Stockmarkets fell, the US dollar did likewise and interest rates on US Government securities were mixed as more problems emerged in markets around the world.

You wouldn’t normally expect President George W Bush to understand irony, especially irony generated by the markets.