Analysis

	World Financial Market for the week of December 3rd – 12th, 2007.

First, the White House suggested freezing the interest payment growth for five years. This can help borrowers keep their homes and continue making payments. The market reacted positively to this news. Whether it will really relieve tension is a rhetorical question. It is likely to be a useful, but not a sufficient interference.
Second, the biggest investment bank Goldman Sachs, as it turned out, was not only actively involved in the issuing of mortgage bonds, but was also playing on their fall. In other words, while encouraging their clients to buy these securities, the organizers themselves were selling them, which became known only now. Moreover, at the time when these securities were actively placed, the head of this financial institution was the current USA Finance Secretary G. Polson. No comments, as they say. But it becomes clear how GS earns such high profits during a crisis.
And the third news is that the UBS bank wrote off $10 billion of losses on mortgage bonds. The bank had to attract additional funding from Singapore enterprises and Middle East investors.

The news of D.Medvedev nomination for the President of the Russian Federation had a positive impact on the Russian stock market. The RTS Index set a new record of 2,333 points. We had anticipated the growth of the Russian market, but the fact that it coincided with this nomination was a surprise.
The European markets also traded up, awaiting the further lowering of the rates in the United States.
Crude oil is being traded at 90 dollars per barrel.
Gold again broke through to 800 dollars per ounce, which was prompted by the demand for precious metals before the holidays. Silver reached 14.75 dollars per ounce, again testing 15 dollars per ounce.

The markets are getting ready for further easing of the USA FRB monetary policy.
Whether the rates go down will be clear on Tuesday. If we do see a reduction by 0.25%, the markets will continue to rise both in Russia and abroad, and the dollar may behave in a strange way. As the markets already consider the lowering of rates, the dollar may turn from its current levels and begin a gradual strengthening. If the rate remains unchanged, which has its reasons, the dollar growth will be quite useful, but the stock markets growth will slow down.