Currencies Feel the Flow ... of Capital Rushing In and Out of Global Stocks

Looks like someone popped the champagne cork too early. I say that because stocks made short order of Monday’s record climb. On Wednesday, the Dow dropped the most in 21 years. The plunge of over 700 points erased over a trillion dollars in market capitalization – only the second time that’s happened ... ever. As the worldwide effort to shore up banks and lending settles in, investors are realizing much of the damage has already been done. Certain interbank rates and money-market rates are showing improvements in the cost to borrow. That’s a testament to extremely motivated governments and central banks.