SubscribeAll Posts Tagged With: "liquidity"
Federal Reserve to Buy Commercial Paper to Free Up Frozen Market
In a bold move to provide stability to the frozen short-term credit markets, the U.S. Federal Reserve yesterday (Tuesday) announced new measures aimed at boosting liquidity and allowing corporations to maintain daily operations.
But the U.S. markets were less enthusiastic about the Fed’s new measure. Slight gains in early morning trading quickly reversed course to plunge much lower.
At the New York close, the blue-chip Dow Jones Industrial Average Index plunged 508.39 points, or 5.11%, to close at 9,447.11. The tech-laden Nasdaq Composite Index plummeted 108.08 points, or 5.80%, to close at 1,754.88. And the broader Standard & Poor’s 500 Index dived 60.66 points, or…
8Oct2008 | Money Morning | Comments Off | ContinuedFinancial Reality Will Sound a Wake-Up Call for the Federal Reserve and the American Dream
In holding overnight rates steady at 2%, the U.S. Federal Reserve once again put forth its belief that, despite a cascade of horrific financial data, the economy is likely to continue to grow slowly and that inflation would moderate.
Although wrong on both counts, this view is consistent with the relative optimism that prevails across the country. After nearly two decades of an uninterrupted consumption binge, most Americans simply refuse to believe that anything can seriously derail the American economy. It’s a pleasant dream, but the wakeup call can’t be too far off.
The benign outlook on inflation is rooted…
13Aug2008 | Money Morning | Comments Off | ContinuedOil Speculation
The Trendy Pick
The price of almost everything on the planet has been rising. And so has the inevitable talk of a commodities bubble and price manipulation. The discussion has become front and center in global markets around the world as economies reel under the heavy weight of soaring prices.
It’s simple for a senator to blame high oil prices on speculators. But don’t hold your breath to hear a long discussion of the taxes on every gallon of gasoline and heating oil that the government collects each time we fill up our tanks. Perish the thought.
So who are these speculators, and why…
5Aug2008 | Whiskey and Gunpowder | Comments Off | Continued
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