Analysis

	World Financial Market for the week of November 19th – 23rd, 2007.

The crisis connected with the sub-standard mortgage in the USA is continuing and against this background the dollar falling does not seem surprising. The growth of the Euro against the dollar has stopped at 1.4966. The Swiss franc has renewed the long-standing highs at 1.0880.
The stock markets during the whole past week were trading differently.  Friday was closed with a growth but the beginning of the new week was marked with a fall throughout the world, with the exception of Russia and India. The American Dow Jones index broke through the key support level of 13, 000 points and closed at 12, 743 points. SnP 500 lost over 2.3%, Nasdaq - almost 2%. The greatest losses were suffered by the banking and financial sectors. On the average they lost over 4% in the first trading day after a long weekend.
The interesting news was the declaration of 1,000% per annum profit of the American hedge fund, which played against the mortgage bonds market. Using the option models the managers reached the record profits in the entire history of the stock market. Meanwhile the crisis is continuing The wave of write-offs has not yet decreased.
It is not so much the fault of borrowers, which default under their mortgage, but also the practice of the universal "virtualization" of finances through a huge amount of derivatives and speculations on them, which leads to "bubbles” in the market. The hour has struck, as the saying goes.