The highlight of this past week has been the revelation of the real magnitude of the current financial crisis, manifested by the dimensions of the actors we have seen entering the scenario during the past ten days, which have pressured the higher U.S economic and political institutions to put out the largest intervention since the year 30’s.
At the minute, the US official are working on a plan to rescue US banks to get rid of their debts in order to recover from the global financial crunch. The plan observes the possibility of removing troubled assets, mostly those related with mortgage-related assets, from the financial companies’ balance sheets, and put them into a new institution.
Together with that proposal, the plan includes the creation of federal insurance for investors in money-market mutual funds similar to the insurance that safeguards banks deposits. This action is meant to cover the large outflow of funds consumers might produce as a consequence of the panic that financial turbulence has created in the population.
Official Links
- · Federal Reserve Bank of New York - Statement Regarding Planned Purchases of Agency Debt
- · Board of Governors of the Federal Reserve - Two enhancements to its programs to provide liquidity to markets
- · US Department of Treasury - Treasury Announces Guaranty Program for Money Market Funds
- · US Department of Treasury - Secretary Henry M. Paulson, Jr. on Comprehensive Approach to Market Developments
- · Federal Reserve - Federal Reserve and other central banks announce further measures to address elevated pressures in funding markets
In-Depth Analysis
- · Weekly Focus - Crisis measures taken to new level by Danske Bank A/S
- · Weekly Credit Strategy Update - The most dramatic week ever in the credit market by Danske Bank A/S
- · Daily Market Report - Additionally, both American and British regulators placed temporary bans on short selling by Wachovia
- · Flash Comment - USA: targeting the entire financial system by Danske Bank A/S
- · Flash Comment - Emerging Markets: Implications of US "bail-out" package by Danske Bank A/S
- · Commodities Morning Briefing - A solution to the crisis? by Jyske Bank
- · Global Central Banks Work To Soothe Fears by Wachovia
- · Daily Currency Market Focus - Markets reverse on talk of resolution trust corp - What is it and will it help by GFT (Global Forex Trading)
Related News
- · GLOBAL MARKETS-Global stocks soar on U.S. plan; debt prices fall (Thomson Financial News)
- · ECB's Trichet welcomes U.S. moves on debt, funds (Thomson Financial News)
- · Paulson calls for 'decisive' asset relief plan (Thomson Financial News)
- · Paulson 'convinced' govt relief program to cost taxpayers less than alternative (Thomson Financial News)
- · TREASURIES-Fall as stocks climb on U.S. debt plan talk (Thomson Financial News)
- · UK's Brown hints at further global action on crisis (Thomson Financial News)
- · UPDATE 4-Gold slides as U.S. asset plan cheers investors (Thomson Financial News)
- · UK Brown: In Talks With International Partners On Coordinated Action (Dow Jones)
- · US Federal Government is working on a final plan to tackle financial crisis (FXstreet.com)
- · Sterling falls vs rallying dlr on US crisis plan (Thomson Financial News)
- · FOREX-Dollar surges vs yen on U.S. asset plan (Thomson Financial News)
- · Gold slips 2 pct as dlr rallies on U.S. asset plan (Thomson Financial News)
Blog's Comments
- · The Advisor Weblog - To the rescue by Valeria Bednarik
