The global credit crisis doesn’t seem to want to ease. And the national banks have to do what they don’t want to do, especially in outspoken neoliberal countries, and that’s interfere in to economic play of the market. Although, that’s the very reason of their existence: correct and steer the economy.
The Fed cut the interest rates to make more money easily available for banks, that might be in a uncomfortable position. Analysts were disappointed because they had expected a bigger cut.
The Fed made an aggressive injection in the market: $40 billion this month for this month only.
Both measure indicate that the Fed start to take the crisis seriously, but they failed to convince investors. They claim they are too modest and maybe not the right ones to take away the underlying problems the world economy currently faces.
The markets proved that the investors were not convinced and indicated that there was an actual fear amongst them that the economy might slip into a recession.
However, other investors said they were pleased by the measures takes because it proves that the Fed will ultimately give back-up to them when they truly need it. One investors puts it like this: "This is basically a reinsurance policy, [...] Central bankers are saying, 'We will stand behind you.' "
It becomes clear that national banks and the Fed in particular no longer can nor do try to depict the crisis as a minor problem that will be resolved by the market itself. They realize that if they want to prevent an even worse global economical crisis, they have to act now in a thorough way.
Sarah Struyf
http://www.iht.com/articles/2007/12/13/business/13fed.php#end_main
Abonneren op:
Reacties posten (Atom)
1 opmerking:
Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the TV de Plasma, I hope you enjoy. The address is http://tv-de-plasma.blogspot.com. A hug.
Een reactie posten