Does anybody know exactly how providing $700b to big banks insures liquidity in the markets?
How does paying for undervalued mortgage assets help the economy?
Why not change the bank rules so that banks will be more willing to lend to each other?
We can already see that bank with the liquidity are buying the bank without liquidity, survival of the fittest…you know, pure capitalism.
Does anybody know?
I hear ya tactician.
Credit crunches should be self correcting? It seems the problem was the mortgage securities and, due in some part by shady deals that created them?
In all the reading I’ve done it seems most banks/lenders had so much capital made up of these mortgage securities that as this credit crunch became apparent the value of these securities became difficult to figure out.
In self correcting credit crunches new capital flows into the market because of increasing interest rates. A excellent example is Buffett’s buying of preferred stocks of Goldman.
This is a plan that I’d like to see Congress pass, if they pass any. A preferred stock…bond that has no term, that gives an excellent interest rate back to us tax payers.
Keeps the US from becoming ‘the best france ever’. Or atleast less so than Congress’ previous bailout plan that failed to pass.
What effect will the pass or failure of the bill have on the EUR/USD pair? If it passes would you short the pair?
I don’t trade the news, as anything is bound to happen, but yeah, I’d be looking to short the pair.
The asian session should have some good action tonight. And I plan to trade the London session as well. Good pips are too be made over the next 24 hours.
Just to continue with the issue we have to be aware that the recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,� the central banks said in a statement. �Some easing of global monetary conditions is therefore warranted.