We're set to attend tomorrow on what the weatherman promises to be a picture-perfect New England fall Sunday.

We're deeply grateful for this amazing show of support!

Here's the Sunday Times' David Smith's take on the extraordinary events which continue to unfold as we write...

Smith, by the way says Sarp is a better name than another contender: Comprehensive Restructuring Action Plan.

The Scotsman sums up this feeling concisely here.

"We reaffirm our shared interest in a strong and stable international financial system. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.

"We continue to monitor exchange rate markets closely and cooperate as appropriate.

"Given China's important role in the global economy we encourage the authorities to allow accelerated appreciation of the RMB effective exchange rate as a means of further rebalancing of the domestic economy and promoting external stability"

The Japanese finance minister was quick to pounce on the disorderly and volatility part, suggesting they are in fact on guard over the recent surge in JPY strength.

“Sellers of protection mark their positions to market every single day. So those firms have already marked down and provided collateral against their positions. As a result, there should be little or no unanticipated additional cost involved in the settlement of Lehman CDS,” said Mr Shirvani, who is co-head of European credit at Credit Suisse. Net exposures were usually about 2 per cent of the gross amount, which vastly reduced the potential cashflows. Assuming $365bn of gross exposure, this would translate into $7.3bn if these estimates are correct.

“Despite immoderate claims relating to the magnitude of the Lehman settlement, these are insignificant when put into the context of $5 trillion in payments on foreign exchange transactions that occur each and every day,” he said.

Some analysts remain concerned that CDS pay-outs might be concentrated with certain banks or hedge funds, causing them liquidity problems.

BBC economic correspondent Andrew Walker in Washington I think caught the general mood at the moment, saying that there is some disappointment that the G-7 plan lacks detail.

Meanwhile French Leader Sarkozy and German Leader Merkel said a common approach to the crisis would emerge from Sunday's Paris summit meeting of 15 eurozone ministers. Lets just hope the meet is a great deal more successful than last weeks conflab in the same city, when the heads of France, Germany, Italy and the U.K. basically came up with dick. A repeat of such ineptitude and heaven help us all!!!!

There are other currencies which are also traded but are done in smaller scale. The highest traded currency is U.S. Dollar. There are certain misconceptions regarding Forex market.

Contrary to popular belief there is no central market where all the currencies are traded. The market is a combination of many contrasting markets, each of which has their own set of rules and regulations. As Forex depends on currency projections, it becomes impossible to trade properly due to the difference in time zones.

That is why the major markets located in Tokyo, London and U.S are opened at different hours. Almost two thirds of the trading that can be followed by currency projections happens during the convergence of New York market opening and European markets are still operating.

Currency projections help mitigating the risk factor. The currency projections show that an exchange is done between parties. During a set period of time following currency projections, both parties switch one currency. The reverse as currency projections after the period runs out.

The top ten most active traders, who predict the currency projections well, do almost three quarters of total dealing. They are known as the inter-bank market and made up of international banks. Trading activities determined by currency projections done by them supply the market with bid and ask prices.

The prices are really tight for the retailers to cope with. The continuous movements in currency projections keep the Forex market a fast paced international currency exchange that crushes all competition amongst financial markets.

Proper currency projections help financial organizations; prominent banks and International companies guarantee growth and maintain their popularity.

To start trading the Forex market online you will first need to open an account.

Check tomorrow for our tips on trading like a pro.

For the market, the more interesting story is word that Ford is looking to sell its controlling stake in Mazda. This could set up some lumpy cross boarder M&A flows.

If you have one unalterable world view, inevitably the cycle will turn your way, eventually. It was a nice run while it lasted, Jim. Now that the commodities bubble has burst, good luck getting the dentist in Omaha or accountant in Cleveland to jump back on the commodities bandwagon. If you believe they'll be back, I have some Pets.Com shares I'd like to sell you.

Makes me wonder whether the newly rich Soviet Un...err, Russia, might try and take advantage of the situation.

The asset backed commercial paper market is basically frozen currently as no one will trust these securitized vehicles because of the potential bombs they contain. This crisis in confidence is the direct result of the structure of these products in which they offer the investor “NO OPTIONS” to exit the trade. Until a way to exit is devised, global liquidity can be expected to continue crash. Let me thank John Taylor of www.fx-concepts.com for the excellent insights below. As a long time investment manager, his handle on history is extraordinary and his clients are undoubtedly well served by his experience.

What is a roach motel? As John explains,

“a box that lured the omni-present house hold pest, the roach, with tantalizing odors into its sticky interior, where it was entrapped, unable to move. Each box would catch hundreds of roaches that died slow deaths, stuck to the very stuff they desired. The catch line of the campaign was “roaches check in but they don’t check out” For us, as money mangers the name roach motel soon became attached to an attractive but complex trade that was easy to enter but was illiquid- i.e. there was no market price except when the trade reached maturity or when (and if) the bank that created the product decided to buy it back. If the investment situation changed and the trade was no longer the one you wanted, you were stuck- or at the very least the hedge of the position would be very expensive and imperfect, often drastically so depending on the circumstances”.

This is the perfect description for the current CDO/CMO/CLO markets as they offered the potential of higher returns than usually available on quality AAA and AA paper. The buyers jumped at them just as the roaches pile into the roach motels. John goes on to say that in the forex markets liquidity is assured. To have an illiquid currency market is to have a huge financial impact on a country’s citizens.

He then says: “It is completely different when dealing with structured products. There is no expectation of liquidity as the institution that created the product has no responsibility for it and is not directly impacted if the price collapses – or more likely is unknown. It is not their complexity that is the primary problem – IBM is complex but it is valued thousands of times each day – it is the total lack of liquidity in all these structures. However, if you add the extreme level of model uncertainty – i.e. it is impossible to value these structures as their have been no previous transactions – together with the lack of liquidity, you end up with assets that might be worth anywhere between 5% and 95% of their original value, it’s anyone’s guess.

“Roach motels or totally illiquid investments only appear when investors are so confident about the future that it never crosses their minds that things might change for the worse. Why else would someone totally ignore the value of his capital and only worry about the spread over the short term funding cost. Considering that there are far more that 100,000 instances of this capital uncertainty, from hedge funds to SIV’s to money market funds to banks to pension funds, there are a lot of problems still ahead. Global liquidity will crash until the day that these assets can be traded and values established. Now while liquidity is shrinking faster than the Fed is pumping it out, the dollar will be strong.”

Thanks again John (www.fx-concepts.com).

This about sums is up doesn’t it? Think of all the institutions, pension funds, banks, mutual funds, money market funds, SIV’s (short term investment vehicles), hedge funds, etc. who have checked in and can’t check out. The biggest money in the world and they didn’t ever raise a question of controlling the risk in the trade or how to exit the investment. Now it’s time to pay the piper as there is NO WAY OUT! Due to unbelievable amounts of overconfidence and hubris, the investors who placed their futures in their hands will be forced to pay the price. This finger of instability has a long way to run. However, you can expect it to be front and center in the headlines over the next several months until a market has been developed to discover the price they should have and a real marketplace for them to be exchanged.

This is an excerpt from TedBits - Copyright © 2007 Ty Andros -- Portions of this document may be reproduced ONLY with full credit and contact information to Ty Andros at tedbits@TraderView.com and www.traderview.com

******************************************************************************************************************

Administrator note: I like this Roach Motel comparison very much. We are subscribed to this view since times immemorial (We trade forex since 1997). We are producing more than 100% annualised returns on the most liquid market: Forex Majors. Our performance is verified by The Trading Systems Authority.

From The GotForex Weekly Newsletter, by Rob Booker

Trading currency is risky. You can sustain the total loss of your trading capital. In the midst of one of the most volatile periods in the forex market in the last 10 years, what are you doing right now to protect your capital? What are the top 10 ways you, every day, manage your risk? Your trading account doesn't represent just the $500, or $1,000, or $100,000 that you have deposited. It represents possible future gains (or losses, of course). If you deplete all that capital on reckless trades, what will you have left to trade with?

It's always better to sit on your trading capital than it is to use it recklessly. Big moves in the currency markets are exciting, for sure. Everyone seems to love a trend and loves even more to talk about how they caught a big piece of it. But we all know what it feels like to take one too many trades, or to risk too much on a single position, or to try to pick a bottom (or top) in the market and then find ourselves losing a significant amount of money.

Are you currently riding losing positions? Here are some thoughts. I can't tell you whether you should open or close any specific trades. But as you think about your trades, consider the following questions: How does your current loss compare with what you expected to lose, based on the testing of the system you are trading?

If your system is not tested, and you do not know what the expected rate or size of losses should be, what can you do right now to find that information?

Have you shown your account to someone that you trust, an experienced trader, who can help you look at your positions and talk about them?

If you feel ashamed of having lost a great deal of money, consider what you can do to face that embarrassment head-on: it is better to deal uncomfortably with a loss in the open than it is to privately blow your entire account. Any pride you feel that you are protecting by not talking openly about your mistakes will, in the end, be a very expensive investment.

Remember that everyone has experienced losses. Even significant ones. Warren Buffett's company Berkshire Hathaway is named for the textile company he invested in that became a sinkhole for money and cost him a great deal of time, effort, and capital. Any successful trader you speak to will frankly discuss the worst trades they've made and what they learned. These experiences have been, in some cases, more instructive and meaningful than even their most profitable trades.

I take a lot of flack at times for suggesting that you are better off speaking openly about your trading mistakes with other people. I don't say that because I delight in hearing about your mistakes. I do it because if there is any possible way that you can find your way out of the losing trades you're in, isn't it worth it to actively and openly try to find that solution?

Are you currently experiencing unusually large gains? Here are some thoughts. There is nothing quite like the joy of making a good trade. We like to be right. We enjoy the thought that we planned, executed, and closed a position successfully. Here are some thoughts if you've recently found yourself in this fortunate circumstance:

Well done! Congratulations on the profitable trading!

Remember that your profits are only "on paper" until you take them out of your account. A close friend of mine accomplished the nearly unbelievable feat of earning profits of over $60,000 in his trading account earlier this year. He sadly lost all but $3,000 of that money, in a margin call, in just a couple of weeks - as he let the entire account slip away by making trades that were far too big. Princess Leia once told Grand Moff Tarkin, "the tighter your grip, the more star systems will slip through your fingers." Substitute "pips" for "star systems" and you have yourself the beginning of a good book about trading psychology.

It's easy to fall prey to the worry that you did not hold onto your winning positions long enough. Be careful about being ungrateful for the winners that you do have. Don't let what you didn't get spoil what you did get.

Just because you've had some good trades does not mean that you have "figured it out." There is no holy grail of trading. Every trading system has its weaknesses. Be careful not to concentrate so much on the good points as to not pay attention to what can go wrong.

Consider using part of your profits as a "Research and Development" budget. With your profits, you may have bought yourself some time to test, fine tune, or otherwise improve your trading skills. I'm not saying you should spend your money on education, or books - or spend any money at all. Perhaps the profits simply give you some breathing room to sit back and deeply think about what you did that got you to this point where you have experienced some success. Learn from your success!

Most of all, please don't become so accustomed to this huge market movement that you expect these huge trends to come along every week of the year. We are experiencing volatility that is off the charts, that is higher than anything we've seen in a long time. Most of the time, the market does not move like this - so please do not start to expect that the GBP/JPY is going to move 1,000 pips every day for you.

Remember: We're here for you. You can call or chat with the IBFX offices anytime you have a question about your demo or live account, or even if you don't have an active account with us right now at all. Although the representatives can't tell you what to trade or how to trade it, they love to hear from you and to talk with you about how you are doing, what questions you have, and more. Thank you for taking this journey into trading with us.

****************************************************************************************************************

Administrators note: IBFX is respactable forex broker using MT4 trading platform . I have one of my accounts there. I recomended them already in my first post.

VOL 1 • ISSUE 3 • OCTOBER 10, 2008

The GotForex Weekly Newsletter

by Rob Booker

Trading currency is risky. You can sustain the total loss of your trading capital.

In the midst of one of the most volatile periods in the forex market in the last 10 years, what are you doing right now to protect your capital? What are the top 10 ways you, every day, manage your risk? Your trading account doesn't represent just the $500, or $1,000, or $100,000 that you have deposited. It represents possible future gains (or losses, of course). If you deplete all that capital on reckless trades, what will you have left to trade with?

It's always better to sit on your trading capital than it is to use it recklessly.

Big moves in the currency markets are exciting, for sure. Everyone seems to love a trend and loves even more to talk about how they caught a big piece of it. But we all know what it feels like to take one too many trades, or to risk too much on a single position, or to try to pick a bottom (or top) in the market and then find ourselves losing a significant amount of money.

Are you currently riding losing positions? Here are some thoughts.

I can't tell you whether you should open or close any specific trades. But as you think about your trades, consider the following questions:

1. How does your current loss compare with what you expected to lose, based on the testing of the system you are trading?

2. If your system is not tested, and you do not know what the expected rate or size of losses should be, what can you do right now to find that information?

3. Have you shown your account to someone that you trust, an experienced trader, who can help you look at your positions and talk about them?

4. If you feel ashamed of having lost a great deal of money, consider what you can do to face that embarrassment head-on: it is better to deal uncomfortably with a loss in the open than it is to privately blow your entire account. Any pride you feel that you are protecting by not talking openly about your mistakes will, in the end, be a very expensive investment.

5. Remember that everyone has experienced losses. Even significant ones. Warren Buffett's company Berkshire Hathaway is named for the textile company he invested in that became a sinkhole for money and cost him a great deal of time, effort, and capital. Any successful trader you speak to will frankly discuss the worst trades they've made and what they learned. These experiences have been, in some cases, more instructive and meaningful than even their most profitable trades.

I take a lot of flack at times for suggesting that you are better off speaking openly about your trading mistakes with other people. I don't say that because I delight in hearing about your mistakes. I do it because if there is any possible way that you can find your way out of the losing trades you're in, isn't it worth it to actively and openly try to find that solution?

Are you currently experiencing unusually large gains?
Here are some thoughts.

There is nothing quite like the joy of making a good trade. We like to be right. We enjoy the thought that we planned, executed, and closed a position successfully. Here are some thoughts if you've recently found yourself in this fortunate circumstance:

1. Well done! Congratulations on the profitable trading!

2. Remember that your profits are only "on paper" until you take them out of your account. A close friend of mine accomplished the nearly unbelievable feat of earning profits of over $60,000 in his trading account earlier this year. He sadly lost all but $3,000 of that money, in a margin call, in just a couple of weeks - as he let the entire account slip away by making trades that were far too big. Princess Leia once told Grand Moff Tarkin, "the tighter your grip, the more star systems will slip through your fingers." Substitute "pips" for "star systems" and you have yourself the beginning of a good book about trading psychology.

3. It's easy to fall prey to the worry that you did not hold onto your winning positions long enough. Be careful about being ungrateful for the winners that you do have. Don't let what you didn't get spoil what you did get.

4. Just because you've had some good trades does not mean that you have "figured it out." There is no holy grail of trading. Every trading system has its weaknesses. Be careful not to concentrate so much on the good points as to not pay attention to what can go wrong.

5. Consider using part of your profits as a "Research and Development" budget. With your profits, you may have bought yourself some time to test, fine tune, or otherwise improve your trading skills. I'm not saying you should spend your money on education, or books - or spend any money at all. Perhaps the profits simply give you some breathing room to sit back and deeply think about what you did that got you to this point where you have experienced some success. Learn from your success!

Most of all, please don't become so accustomed to this huge market movement that you expect these huge trends to come along every week of the year. We are experiencing volatility that is off the charts, that is higher than anything we've seen in a long time. Most of the time, the market does not move like this - so please do not start to expect that the GBP/JPY is going to move 1,000 pips every day for you.

Remember: We're here for you.

You can call or chat with the IBFX offices anytime you have a question about your demo or live account, or even if you don't have an active account with us right now at all. Although the representatives can't tell you what to trade or how to trade it, they love to hear from you and to talk with you about how you are doing, what questions you have, and more.

Thank you for taking this journey into trading with us.

ROB BOOKER

IBFX CHIEF MARKET STRATEGIST

Rob Booker, known for his charismatic style and sound technical trading strategies, possesses an ideal mixture of Wall Street know-how and Hollywood panache. He has assisted countless numbers of fellow traders develop their own trading systems and manage the mental, psychological and discipline issues related to trading in the financial markets.

Prior to joining IBFX in the Summer of 2008 as Chief Market Strategist, he was the founder and host of TraderRadio.net, a daily radio program for traders heard by home-based investors around the world. He is a regular contributor to many financial industry publications, and has made regular appearances on national television and radio.

Rob is the author of Adventures of a Currency Trader, Currency Trader's Handbook and Strategy:10.

Economic factors and indicators are released by the government or by private organizations that can look in depth at economic performances. These indicators can be used to analyse economic performances from any country. The economic reports measure a country's economic health, in addition to government policies and current events.

For the most part, a reputable broker can look at economic indicators and know which trades will be best. Reports on these indicators are released at scheduled times and can tell if a certain country is experiencing improvement in the economy or if the country's economy is on the decline. When the prices fluctuate, a great deal one way or the other, the price can be affected.

Current events and the state of the economy in any given nation is one of the top economic indicators used when analyzing the Forex. Factors such as unemployment numbers, housing statistics and the current state of a country's government can all affect changes in the Forex. When a country is feeling optimisitic about the current state of affairs in their country, prices of the Forex will reflect this. When a nation experiences political unrest, large amounts of unemployed workers and inflation, the rate of the currency will be reflected. Sometimes, this indicator tends to be overlooked, but can serve as an important gauge in the fluctuations of the Forex.

The gross domestic product,or GDP,is another economic indicator used when looking at the foreign exchange market. The GDP is considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total market value of all goods and services that are normally produced within any given country. This is usually measured in the time frame of a year, and not in weeks or months. Using a larger time period gives good statistics on the products and services that are produced in the country. This indicator is not used alone when forecasting the Forex. The GDP is considered a lagging indicator, meaning that is a measurable factor that changes after the economy has already began to follow a certain trend.

Retail sales reports are the third economic factor that is often used in analyzing the Forex. This is the total receipt of all retail stores in any country. Usually, this measurement is not every single retail sale, but is a sample of diverse retail stores throughout the country. This is considered a very reliable and important economic indicator because of the consumer spending patterns that are expected throughout the year. This factor is usually more important that lagging indicators and gives a clearer picture of the state of the economy in any country.

Another reliable economic indicator in the foreign exchange market is the industrial production report. This report shows the fluctuation in productions in industries such as factories, and utilities. The report looks at actual production in relation to what the production capacity potential is over a period of time. When a country is producing at a maximum capacity it positively affects the Forex and is considered ideal conditions for traders.

The consumer price index, or the CPI, is the last critical economic indicator in analyzing the Forex. The CPI is the measure of the change in the prices of consumer goods in 200 categories. This report can tell whether or not a country is making or losing money on their products and services. The exports that a country has are very important when looking at this indicator because the amount of exports can reflect a currency's weakness or its strength. The Forex is affected by many factors. These factors usually follow a certain trend so it is important to understand how each factor works in forecasting the Forex. Some are good indicators alone while others should be used together for accurate Forex predications

As stated in the introduction to this topic, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital – i.e., funds you can afford to lose without affecting your financial situation. There are other reasons why Forex trading may or may not be an appropriate investment for you, and they are highlighted below.

In Forex you are trading substantial sums of money, and there is always a possibility that a trade will go against you. There are several trading tools that can minimize your risk, yes, but eliminate it, no. With caution, and above all education, the Forex trader can learn how to trade profitably and minimize loss.

The Scams And Fraud

Forex scams were fairly common a few years ago. The industry has cleaned up considerably since then. Still, you should exercise caution before signing up with a Forex broker by checking their background.

Reputable Forex brokers will be associated with large financial institutions like banks or insurance companies, and they will be registered with the proper government agencies. In the United States, brokers should be registered with the Commodities Futures Trading Commission or a member of the National Futures Association. You can also check with your local Consumer Protection Bureau and the Better Business Bureau.

The Market Could Move Against You

No one can predict with certainty which way exchange rates will go, and the Forex market is volatile. Fluctuations in the foreign exchange rate between the time you place the trade and the time you close it out will affect the price of your Forex contract and the potential profit and losses relating to it.

You Could Lose Your Entire Investment

You will be required to deposit an amount of money (often referred to as a "security deposit" or "margin") with your Forex dealer in order to buy or sell an off-exchange Forex contract. As discussed earlier, a relatively small amount of money can enable you to hold a Forex position worth many times the account value. This is referred to as leverage or gearing. The smaller the deposits in relation to the underlying value of the contract, the greater the leverage. If the price moves in an unfavorable direction, high leverage can produce large losses in relation to your initial deposit. In fact, even a small move against your position may result in a large loss, including the loss of your entire deposit. Depending on your agreement with your dealer, you may also be required to pay additional losses.

You Are Relying On The Dealer's Creditworthiness And Reputation

Retail off-exchange Forex trades are not guaranteed by a clearing organization. Furthermore, funds that you have deposited to trade Forex contracts are not insured and do not receive a priority in bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer goes bankrupt.

There Is No Central Marketplace

Unlike regulated futures exchanges, in the retail off-exchange Forex market there is no central marketplace with many buyers and sellers. The Forex dealer determines the execution price, so you are relying on the dealer's integrity for a fair price.

The Trading System Could Break Down

If you are using an Internet-based or other electronic system to place trades, some part of the system could fail. In the event of a system failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. A system failure may also result in loss of orders or order priority.

You Could Be A Victim Of Fraud

As with any investment, you should protect yourself from fraud. Beware of investment schemes that promise significant returns with little risk. You should take a close and cautious look at the investment offer itself and continue to monitor any investment you do make.

Types of Risks

Even through you are dealing with a reputable broker, there are risks to Forex trading. Transactions are unexpected and depend on volatile markets and political events.

Exchange Rate Risk: refers to the fluctuations in currency prices over a trading period. Prices can fall rapidly unless stop loss orders are used.

Interest Rate Risk: can result from discrepancies between the interest rates in the 2 countries represented by the currency pair in a Forex quote.

Credit Risk: is the possibility that 1 party in a Forex transaction may not honor their debt when the deal is closed. This may happen when a bank or financial institution declares insolvency.

Country Risk: is associated with governments that may become involved in foreign exchange markets by limiting the flow of currency. There is more country risk associated with "exotic" currencies than with major countries that allow the free trading of their currency.

How To Limit Risks?

There are some ways to limit risk and financial exposure. Every trader should have a trading strategy; i.e., knowing when to enter and exit the market, and what kind of movements to expect. Developing strategies requires education, which is the key to limiting risk. The basic rule which trader follows aal time: Never use money that you cannot afford to lose.

Every Forex trader needs to know at least the basics about technical analysis and how to read financial charts. He should study chart movements and indicators and understand how charts are interpreted.

Stop-Loss Orders

Even the most knowledgeable traders, can't predict with absolute certainty how the market will behave. For this reason, every Forex transaction should take tools to minimize loss.

Stop-loss orders are the most common way to minimizing risk. A stop-loss order contains instructions to exit your position if the price reaches a certain point. If you take a long position (expecting the price to rise) you would place a stop loss order below the current market price. If you take a short position (expecting the price to fall) you would place a stop loss order above the current market price.

Stop loss orders can be used in conjunction with limit orders to automate Forex trading.

There is no way he would raise the notion of a rate cut at this time, at this place without intending to follow-through. They better act on Monday.

UPDATE Saturday evening: Reuters headline did not make clear that Trichet was speaking in the past tense about rate cuts, so forget about a rate cut Monday. Pardon the misunderstanding.

Separately, Italian finance minister Tremonti says "Basel II is dead". Basil II was the basis for mark-to-market accounting and capital adequacy standards.

Finmin Steinbrueck of German holds out hope for a German bank capital infusion at the EU summit on Sunday.

Paulson said in a statement that the G7 finalized plans for market liquidity and to strengthen financial institutions.

Washington-- The G-7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:

1. Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
2. Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
3. Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
4. Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
5. Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.

The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries. We will use macroeconomic policy tools as necessary and appropriate. We strongly support the IMF's critical role in assisting countries affected by this turmoil. We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan.

There is lots of ambiguity in the statement but hopefully we will get some clarity from Secretary Paulson's press conference.