My comment: this is useless as useless have been the previous cuts. It does not address any of the real problems of main street nor uses the right tools to avert a recession. The answer will not come through financial policies such this one but through budgetary and economic policies. But this cut allows banks to get more funds, cheaper funds.
Peace and best wishes. Xi Fed Cuts Rate to 1% to Avert Prolonged Recession (Update2) http://www.bloomberg.com/apps/news?pid=20601087&sid=atebTAeaSURc&refer=home On 16 oct, 22:08, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > I see ! Than you very much ! > > (((((Justice))))) > > Peace and best wishes. > > Xi > > On Oct 16, 11:03 pm, Justice <[EMAIL PROTECTED]> wrote: > > > > > When you post to this thread -- or any other, just at the top of your > > message you will see "Add CC" and "Edit Subject" > > > Edit subject is the way to change the Re Line. > > > On Oct 13, 3:31 pm, "[EMAIL PROTECTED]" <[EMAIL PROTECTED]> wrote: > > > > Thank you very much !!! > > > > (((((Cincy))))) > > > > Peace and best wishes. > > > > Xi > > > > On Oct 13, 9:14 pm, CincyBabe <[EMAIL PROTECTED]> wrote: > > > > > 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.''- Hide > > > > > > quoted text - > > > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
