Home Success Magazine


Click Logo To Page

Banks pump billions to calm the markets

Fed joins global bid to ease credit crisis
www.xginibriere.com
The Federal Reserve and central banks around the world yesterday took the extraordinary step of pumping more than $100 billion into financial markets riven by a credit crisis, the largest such intervention since the September 11 terrorism attacks.
www.xginibriere.com

www.xginibriere.com
In a rare public statement, the Fed said it wanted to ensure financial markets had enough money to continue operating in an orderly fashion.


www.xginibriere.com
"In current circumstances," the Fed said, banks "may experience unusual funding needs because of dislocations in money and credit markets."

www.xginibriere.com

Financial markets are reacting seemingly overnight to the jarring end of an era of easy money, when higher-risk borrowers enjoyed nearly unfettered access to huge sums at low interest rates. The market for subprime mortgages, to people with less than perfect credit histories, cracked first and remains the most seriously impaired, but other types of credit such as corporate junk bonds and mortgages backing commercial property are also under duress.

www.xginibriere.com

So far, the central bankers' strategy of rapid, severe intervention shows signs of working. Earlier yesterday, European stock markets posted losses of as much as 3 percent, and it appeared US markets would follow suit when the Dow Jones industrial average began the day with a 212-point decline. But as the Fed pumped money into the US system through the day, stocks began to rally, and the Dow finished the day down just 31.14 points, at 13,239.54. Despite the tremendous, sudden investor anxiety and wild market gyrations and losses, the Dow actually ended the week up -- just barely -- with a 0.4-percent gain.


www.xginibriere.com
"Within the stock market there has been massive dislocation, and the Fed provided everyone a little room to unwind," said Kevin Cronin, chief investment officer at Putnam Investments in Boston. If lenders had been unable to continue providing credit, he said, then interest rates would have exploded, potentially leading to a widespread reduction in economic activity.


www.xginibriere.com
The Fed "wanted to let the air out of the balloon," Cronin said.

www.xginibriere.com

The Fed yesterday loaned $38 billion to US banks to help them finance credit and lending operations, on top of a similar $24 billion the US regulator provided Thursday. Earlier yesterday, central bankers in Europe, Japan, Asia, and Canada made similar moves.

www.xginibriere.com

The central banks' actions enabled lenders to have enough money available to loan to investors to buy, sell, or hold securities as they would normally. Without such additional funds, a shortage of credit could cause markets to seize and prices to go haywire.

www.xginibriere.com

"Central bankers did two things," said Art Hogan, chief market analyst at Jeffries & Co. in Boston. "They added much needed liquidity to the market and signaled that they stand at the ready for a system that may or may not need more help."

www.xginibriere.com

More problems seem to arrive daily. Yesterday, shares of Countrywide Financial Corp. fell nearly 3 percent one day after the biggest US mortgage lender said credit problems among its own borrowers are worsening, and it anticipated more difficulty funding loans. Separately shares in Washington Mutual Inc., the big savings and loan, were down 2 percent a day after it said it faces risks from lower market liquidity.

www.xginibriere.com

Yesterday's stock swings capped three weeks in which the Dow Jones industrial average often moved at triple-digit levels in each trading session. The turmoil reflects uncertainty about financial markets even though the economy itself appears to remain stable, according to economists and traders.

www.xginibriere.com

"The fundamentals, underlying inflation, economic growth rates, US employment growth, are still robust," said Nariman Behravesh, chief economist at Global Insight of Waltham. "The markets are panicking a little, but it's still a financial story. As long as the central banks succeed in calming markets down, I don't see this spreading to the broader economy."

www.xginibriere.com

The volatility still poses longer-term strategy questions for the Fed. One is whether to lower interest rates, even though this week Fed policy makers elected to keep their benchmark lending rate at 5.25 percent, arguing that inflation is a greater risk to the economy than the credit shortage. But by lowering its interest rate, the Fed would make it cheaper to borrow money. That would ease pressures on the real estate sector and other investments by, for example, lowering the overall cost of transactions such as buying a home or refinancing a mortgage.

www.xginibriere.com

Richard Yamarone, chief economist at Argus Research in New York, said he suspects the Fed will simply try to hold the line on interest rates. He noted that in its statement to the markets yesterday the Fed made a point of mentioning the current interest rate of 5.25 percent.
www.xginibriere.com


"They're saying to the markets, 'Listen, we're giving you some breathing room, but we're still sticking to our guns' " on the interest rates, Yamarone said.




Summary
Banks pump billions to calm the markets
The US Federal Reserves pumped more than 100 bilion dollars to save the financial markets

Keywords:
stock market, stocks, stock broker, stock invest, bank, banking, credit, credit card, financial markets

Word Count:831

[#1147 of 2596] -end


NEW Articles of the day for
Home Success Magazine

DO and DON'T DO "Money Making Guidelines" For Home Business Entrepreneurs
Making Money Online - DO and DON'T DO Guidelines Confused..? Too much data to cope with..? Know nothing (or, very little..) About how, for "heaven sakes", computers "talk" and how to "answer" Them, read on... I knew absolutely nothing, nada, zero....
...Read More

How to start your own Work at Home Internet Business with Very Little Investment
Have you always wanted to work at home? Have your own business? Didnít think it was possible? No more commuting in traffic (plus gasoline prices right now are ridiculous). No more "business attire" (work in your jammies) and no more Corporate...
...Read More

 

Visit Our Advertisers -
They help keep this service FREE!

NEW Ads every day in
Home Success Magazine

Current Issue of 08/14/2018

WEALTHPEX


183


ADVERTISE TO
INTERNET MILLIONS

Only $19.95 for 54
Words or Less
Expect Amazing Results
DIRECTORY
POB 661
DALLAS, GA 30132
www.DomainWealthSites.com/9032.html

65



78


GOOD NEWS FOR ALL AMERICANS!

FREE $50 GIFT CARD!
PLUS AN EQUAL OPPORTUNITY TO RECEIVE A SUPPLEMENTAL INCOME OF $100,000 OR MORE BY MAIL!
EMAIL NAME & ADDRESS TO:
bigmoneyin2013@gmail.com

103


WOW Start Up Home Based Business
For Under $20

With HUGE PROFIT POTENTIAL!
FREE DETAILS Send SASE To:
BRIAN ARENDELL
PO Box 20783
Portland, OR 97294

28


HOW TO MAKE A MILLION DOLLARS!

Send $5.00 Cash + Your Name &
Address for my Five Page Plan.
It Works. Try It. Mail to: ALLEN
600- 18th. Ave. N # 217E, Minneapolis,MN 55411

70


DISTRIBUTORS WANTED!
Make up to $10,000 Monthly
GIVING AWAY FREE PRESCRIPTION DISCOUNT CARDS

which save people up to 87% at over 54,000 pharmacies nationwide! For a complete information packet, send this ad and $1.00 to:
ALLIED CONSULTING, PO BOX 111124
AURORA, CO 80042
Attn: RxCut -SYM-1

150


"LIGHTS OUT"

For Hurricane and Tornadoes.
8-in1 Am/FM Dynamo Lantern.
Telescoping Lamp/Flashlight.
When closed works as a Palm sized flash light,
opens for use as a desk lamp.
Go to sporting goods and electronics:
williesbestdiscounts.com

43


OPPORTUNITY TO CUT MORTGAGE PAYMENTS IN HALF!

www.themtgmanager.org/aff/8203 - Leroy Taggart
www.themortgagemanager.biz/8203-Leroy Taggart
www.themortgagemanager.biz/backoffice

27


MONEY-MAKING OPPORTUNITIES

Receive $50-$100 or More. Make Big Bucks! Money To Your Mailbox - Guaranteed To Work, Easily. Free Details. Send $1.00 + 2 F/C Stamps:
WILLIAM-SC252
POB 490443
CHICAGO,ILL 60649
1(800)631-8233

118


Full Page Ads

!-WANT_TO_PURCHASE_ MINERALS_&_OTHER_OIL_&_GAS _INTERESTS.pdf
0-RL-Browning-Endless-Cash-System.pdf
0-S-DADA-The-Millionaires Club-Lotto-Tickets.pdf
00-JC-Patton-wealthperx.pdf
00-Wrightsco-com.pdf
00-eMclvor.pdf
00-jj-jones.pdf
1-J-Hurley-Free-Money-Making-Downline-for-Life.pdf
1-M-Golden-Make-Money-Simple-Cash-Payment-Plan.pdf
1-R-Bacha-The- Perpetual-Wheel-of-Fortune.pdf
2-D-Foley.pdf
20-J-Hurley.pdf
20-JCPatton-Mail-Lists.pdf
20-Robert-Peterson.pdf
20-T-E-Abraham-The-Wealth-Union.pdf
3-D-R-Deegan-Cash-Retirementt-Plan.pdf
3-J-Hurley-Time-Freedom-Rings.pdf
5-L-Valentine.pdf
5-L-Valentine2.pdf
5-S-Ford-The-Largest-Permanent-Matrix.pdf
5-T-Abraham-The-Wealth-Union.pdf
6-McCray.pdf
7-D-Deegan.pdf
8-180-Niche-package-offer-THE DOUGLAS MILLIKEN COMPANY.pdf
8-CR-Ellard.pdf
8-E-Molina.pdf
8-L-Valentine.pdf
88-A-Lawson.pdf
88-BD-JOHNSON.pdf
88-D-Baker.pdf
88-J-SMITH.pdf
88-d-nicholls.pdf
88-h-clay.pdf
88-j-orlando.pdf
88-jc-patton.pdf
88-l-domerson.pdf
88-l-gaines.pdf
88-m-bugarini.pdf
88-s-frescas.pdf
99-A-Moore.pdf
99-E-Bynum.pdf
99-H-Clay.pdf
99-JC-Patton-Mail-Lists.pdf
99-Monique's Mail.pdf
99-R-Peterson.pdf
99-c-vandergrift.pdf
99-j-skuse.pdf
99-r-vandergrift.pdf
99-wrights.pdf
A-BRADLEY.pdf
FRED-HINSTON.pdf
Gerard-Jeanty-1.pdf
Gerard-Jeanty-2.pdf
K-SCHECHTER.pdf
R-DEL-PILAR.pdf
Rabbi-Rev-Earl-Kelly.pdf
T-Johnson.pdf
Your-2016-ADSHEET-DIRECTORY1.pdf
sam-scruggs-21.pdf

 

 

Home Success Magazine

Home Success Magazine - COPYRIGHT - ALL RIGHTS RESERVED