Global stocks fell to nearly 6-year lows Monday, as the dollar hit a 3-year peak after HSBC announced a $17.75 billion rights issue and AIG got a $30 billion cash injection from the US.
Experts mull whether the governments' efforts to support the ailing financial system and slowing global economy are working or worthwhile.
Quantitative Easing Fails When Debt is Too High
Quantitative easing does not succeed in an environment where, like in the U.S., they have debt that is the equivalent of global GDP, says Hugh Hendry, CIO of Eclectica Asset Management.
Govts Need to Recognize Banks' Insolvency
The first step on the road to redemption is for governments to recognize the financial sector is insolvent, says Hugh Hendry, CIO of Eclectica Asset Management.
Upbeat on AIG's Revised Bailout Plan
Dodge Dorland, chief investment officer of Landor Capital Management, says a revised bailout package for AIG with a potential IPO will be looked upon favorably by the ratings agencies.
Beware of Bank Stocks
Individual investors should steer clear of buying banking stocks unless they have a clear view on their direction, Jonathan Fry from Jonathan Fry & Co. told CNBC Monday. David Black from Defaqto.com joined the discussion.
Dow Will Fall Below 7,000
We will cross below the 7,000 level on the Dow Monday and when we do, it will be a trading opportunity, Dodge Dorland, CIO at Landor Capital Management, told CNBC. He sees very active trade on the US stock market at the beginning of the day.
There are short-term opportunities in the financial services sector, especially "ETFs that trade on the inverse of the activity that's happening" in that sector, according to Dorland. Opportunity in the retail sector will only arise next year, he added.
Dorland sees job losses bottoming out at the end of this year.
Dollar Rising on "Rescue Fatigue"
Investors are getting "rescue fatigue", says John Noonan, senior FX analyst at Thomson Reuters, explaining the dollar's rise on Monday.
Underweight on Euro
Thio Chin Loo, senior currency strategist at BNP Paribas is underweight on the euro as she expects the currency to underperform other major currencies. She tells CNBC the best way to play on the euro weakness.
Europe's Free Market Principles
Europe may be more of a free market economy than the US, says Clifford Bennett, chief economist at Kinetic Securities. He speaks to CNBC about Europe rejecting a massive bailout.
- HSBC to Raise $17.8 Billion New Capital, Profit Falls
- US Government Commits Further $30 Billion to AIG