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Pros Say: Half Measures Won’t Cure Banks

CNBC.com
Wednesday, 25 Feb 2009 | 4:41 AM ET

Global stocks rose Wednesday after Wall Street's overnight rally spurred by Federal Reserve Chairman Ben Bernanke's reassuring comments on the financial industry. Bernanke said the government did not have plans to nationalize major banks at this stage.

But experts tell CNBC that half measures on the bank nationalization front will not cure the ailing sector.

No Middle Road to Nationalization

Hans Redeker, global head of forex strategy at BNP Paribas, says with partial nationalization, public and private shareholders' different interests will not lead to desired results.

Will Nationalizing US Banks Hurt the Dollar?

Credit Crisis
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Credit Crisis

If the U.S. does go ahead and nationalize Citigroup and Bank of America, it could be positive for the dollar in the short term, says Euan McCreadie, senior corporate dealer at OzForex.

Dollar -- Safe-Haven Currency of Choice

The dollar seems to be holding most of the ace cards when it comes to being the currency of choice for safe haven, notes Dwyfor Evans, VP & senior macro strategist at State Street Global Markets.

US Economy Can Lead Again

Luca Silipo, chief economist at Natixis says the U.S. can emerge stronger from the current crisis and lead again, as he reviews U.S. President Obama's Wednesday address to Congress.

Obama's Speech Unlikely to Affect FX

Jan Lambregts, head of research, Asia Pacific at Rabobank International does not think that U.S. President Obama's speech will have much impact on the FX markets.

Yen Likely to Depreciate Further

Dollar-yen may rise to 102 in the next few of months, predicts Richard Grace, chief currency strategist at Commonwealth Bank of Australia, as he believes the yen's safe-haven status is no longer appropriate.

HK's Economy May Contract Further

Hong Kong's economy may continue to shrink in the coming quarters, warns Castor Pang, strategist at Sun Hung Kai, after its fourth-quarter GDP fell 2.5% on year. He analyzes the health of the HK economy.

Upbeat on Singapore, HK & China

The domestic markets in Singapore, Hong Kong and China will be the first to recover, believes Gabriel Yap, senior dealing director at DMG and Partners Securities.

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