There, I changed it for you, Xi. If you only reply to this thread, it will stay changed.
On Oct 13, 3:09 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > sorry, in the header I tried to mean "...without swap limits". I do > not know how to change it. > > :( > > On Oct 13, 7:19 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > > > My comment: Impressive ! I got shocked ! "The Federal Reserve led > > an unprecedented push by central banks to flood the financial system > > with as many dollars as (some European) banks want". > > >http://www.bloomberg.com/apps/news?pid=20601087&sid=a_5OrlUxIIYM&refe... > > > Oct. 13 (Bloomberg) -- The Federal Reserve led an unprecedented push > > by central banks to flood the financial system with as many dollars as > > banks want, backing up government efforts to revive confidence and > > helping to reduce money-market rates. > > > The European Central Bank, the Bank of England and the Swiss National > > Bank will offer European banks unlimited dollar funds with maturities > > of seven, 28 and 84 days at fixed interest rates against ``appropriate > > collateral,'' the Washington-based Fed said today. The Fed had capped > > at $380 billion the currency it would swap with the three central > > banks. > > > Global economic leaders have redoubled efforts to unfreeze credit > > markets and avert the worst worldwide recession in thirty years after > > last week's 20 percent slide in the MSCI World Index. Policy makers > > from the Group of Seven nations are committed to taking ``all > > necessary steps'' to stem a market panic, and European and U.S. > > governments today outlined plans to avoid banks failing. > > > ``Like high waves that have gathered tremendous pace, global policy > > initiatives are coming to crash on the markets' shores,'' said Alex > > Patelis, chief international economist at Merrill Lynch & Co. in > > London. ``A turning point could be reached.'' > > > The cost of borrowing in dollars for three months today fell to 4.75 > > percent from 4.82 percent, the highest this year. The rate for euros > > over the same timeframe declined to 5.32 percent from 5.38 percent. > > > `Funding Stresses' > > > On foreign exchange markets, the euro rose as much as 2 percent > > against the dollar. Equities rallied worldwide and the MSCI World > > Index climbed 2 percent. Morgan Stanley soared 56 percent, while Bank > > of America Corp. and Citigroup Inc. jumped more than 10 percent. > > > ``Taken together, the latest moves increase the chances that we will > > begin to see some relaxation of the intense funding stresses,'' > > Dominic Wilson and other economists at Goldman Sachs Group Inc. wrote > > in a note today. ``This is because bank solvency risk should decline > > as the government offers protection.'' > > > As well as slashing interest rates in concert last week, global > > central banks are expanding their toolkits to push down money-market > > rates. The Fed on Oct. 7 said it will create a special fund to buy > > U.S. commercial paper and the ECB last week said it would offer > > financial firms unlimited euro funds. The Bank of England is scheduled > > to revamp its own money-market operations later this week. > > > Until now, central banks and governments have failed to gain traction > > in markets, with investors criticizing them for adopting a scattershot > > and uncoordinated approach. > > > `Work Together' > > > The ECB, the BOE and the Swiss National Bank ``can provide U.S. dollar > > funding in quantities sufficient to meet their demand'' into 2009, the > > Fed said today. The Bank of Japan may introduce ``similar measures.'' > > > The aim is to keep the financial system flowing with the world's > > reserve currency. Banks are hoarding cash for fear they will lose the > > money if it's loaned or held elsewhere, or because they need it for > > their own funding needs. > > > ``Central banks will continue to work together and are prepared to > > take whatever measures are necessary to provide sufficient liquidity > > in short-term funding markets,'' the Fed's statement said. > > > What began last December as a $24 billion arrangement between the Fed, > > the ECB and Swiss central bank was boosted over the past year to $620 > > billion and broadened to additional countries. The Fed didn't announce > > changes to the $240 billion of swap lines with six other central > > banks, including those in Japan, Canada, Denmark, Norway, Sweden and > > Australia. > > > `More Important' > > > Today's ``action is unprecedented,'' said Neil Mackinnon, chief > > economist at ECU Plc in London and a former U.K Treasury official. > > Andrew Milligan, who helps oversee about $260 billion as head of > > global strategy at Standard Life, said it's a ``much more important'' > > move than the coordinated rate cut. > > > G-7 finance chiefs pledged Oct. 10 to take ``urgent and exceptional > > action'' after stocks plunged and as a global recession looms. > > > France, Germany and Spain today committed 960 billion euros ($1.3 > > trillion) to guarantee lending between banks and take stakes in them. > > That followed a summit of European leaders in Paris yesterday focused > > on achieving a more united front to battle the crisis. > > > Royal Bank of Scotland Group Plc, HBOS Plc, and Lloyds TSB Group will > > get an unprecedented 37 billion-pound ($64 billion) bailout from the > > U.K. government. The U.K. stole a march on its counterparts by saying > > last week it would guarantee lending between banks and invest in > > lenders. > > > In a New York Times column published today before the announcement > > that he had won the Nobel Prize in economics, Paul Krugman said the > > U.K.'s ``combination of clarity and decisiveness hasn't been matched > > by any Western government.'' > > > U.S. Proposal > > > The U.S. Treasury today fleshed out its new proposal to buy stakes in > > financial firms. The program will be optional and aimed at ``healthy > > firms,'' Treasury Assistant Secretary Neel Kashkari, who oversees the > > $700 billion rescue package, said in a speech in Washington. U.S. > > Treasury Secretary Henry Paulson has identified purchasing stocks as > > his top priority. > > > The U.S. may now have to match Europe in guaranteeing interbank loans, > > said Win Thin, an economist at Brown Brothers Harriman & Co. in New > > York. ``It would appear that it has no choice but to follow suit,'' he > > said. > > > The collapse of New York-based Lehman Brothers Holdings Inc. > > precipitated the latest chapter of the 14-month crisis, causing banks > > to stop lending to each other out of concern they may not get their > > money back. The world's largest financial companies have posted more > > than $635 billion in writedowns and credit losses since the start of > > last year after the U.S. housing market slumped. > > > Today's move by central banks is ``another welcome measure,'' said > > Ross Walker, an economist at Royal Bank of Scotland in London. ``We'll > > have to see what comes out of it. We all expect more rate cuts, > > whether they're coordinated or not is another matter.'' --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
