Her voice is very sore at that. On Oct 9, 9:43 am, Gaar <[EMAIL PROTECTED]> wrote: > What? > > No Fat Lady Singing?!?!?!?!?!?!? > > I suppose she does deserve a break... > > On Oct 8, 3:41 pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > > > > > World's central banks in joint action to halt carnage > > > Update The Federal Reserve, European Central Bank and four other > > central banks lowered interest rates in an unprecedented coordinated > > effort to ease the economic effects of the worst financial crisis > > since the Great Depression. > > > The Fed, ECB, Bank of England, Bank of Canada and Sweden's Riksbank > > each reduced their benchmark rates by half apercentage point. The Bank > > of Japan, which didn't participate in the move, said it supported the > > action. Switzerland also took part. China's central bank separately > > cut its key rate 0.27 percentage point. > > > ``We are now looking at the first page of the global-depression > > playbook,'' said Carl Weinberg, chief economist at High Frequency > > Economics in Valhalla, New York. ``The only solution is to cut rates > > as close to zero as you dare,'' pump money into the banking system > > ``hand over fist'' and increase government spending, he said. > > > The overnight move follows a global meltdown that sent US stock > > indexes heading for their biggest annual decline since 1937; Japan's > > benchmark today had the worst drop in two decades. Policy makers are > > also aiming to unfreeze credit markets after the premium on the three- > > month London interbank offered rate over the Fed's main rate doubled > > in two weeks to a record. > > > Rate levels > > > The Fed reduced its benchmark rate to 1.5%. The ECB's main rate is now > > 3.75%; Canada's fell to 2.5%; the UK's rate dropped to 4.5%; and > > Sweden's rate declined to 4.25%. China cut interest rates for the > > second time in three weeks, reducing the main rate to 6.93%. > > > Stocks at first rallied after the announcement, then turned lower. > > Some analysts said the central banks should have lowered rates by > > more, and predicted further reductions. Economists at Goldman Sachs > > Group Inc. and Morgan Stanley now project another half-point move by > > the Fed at its Oct. 28-29 meeting. > > > The Standard & Poor's 500 Stock Index fell 1.1% to 984.94 at the close > > in New York, capping a 16% loss in six trading days. Europe's Dow > > Jones Stoxx 600 Index slumped 6%. Japan's Nikkei 225 Stock Average > > lost 9.4% to 9,203.32 earlier today, before the announcement. > > > ``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 joint > > statement today. ``Some easing of global monetary conditions is > > therefore warranted.'' > > > World recession > > > Global policy makers are reducing rates as economies weaken around the > > world. The International Monetary Fund said the global economy is > > heading for a recession in 2009 and increased its estimate of losses > > from the financial crisis to $US1.4 trillion. > > > The crisis already prompted the US to enact a $US700 billion program > > to buy troubled assets from banks in an effort to prop them up. UK > > banks will get a 50 billion-pound ($122 billion) government bailout, > > while Spain will spend as much as 50 billion euros to buy bank assets. > > European governments have also moved to rescue banks Fortis, Dexia SA > > and Hypo Real Estate Holding AG. > > > The US Treasury said today it sees ``severe dislocations'' in the > > government bond market and plans to sell more debt to address > > shortages. The market problems ``are across the Treasury market > > curve'' and are primarily affecting medium- and long-term debt, from > > two-year notes through 30-year bonds, a Treasury official told > > reporters. > > > The Fed's Open Market Committee, which voted unanimously for today's > > move, said in its statement that ``incoming economic data suggest that > > the pace of economic activity has slowed markedly in recent months. > > Moreover, the intensification of financial-market turmoil is likely to > > exert additional restraint on spending.'' > > > Europe's reversal > > > European policy makers were forced into action after the collapse of > > Lehman Brothers Holdings Inc. last month roiled world financial > > markets and caught them off guard. The ECB raised rates in July and > > Bank of England Governor Mervyn King warned the government as recently > > as Sept. 16 that inflation was set to accelerate. > > > The decision to let Lehman go ``had enormous, very unfortunate > > consequences,'' European Central Bank President Jean- Claude Trichet > > said Oct. 2. On the same day, he signaled the ECB was ready to cut > > rates. > > > ECB council member Ewald Nowotny said in an interview that Wednesday's > > rate reduction ``should not be seen as a first step in a possible > > series'' by the ECB. ``The situation has to be assessed as we go > > along,'' and the current rate level ``will ensure that inflation > > expectations remain anchored,'' said Nowotny, chief of Austria's > > central bank. > > > Deteriorating economy > > > The action comes a day after Fed Chairman Ben S. Bernanke failed to > > assuage investors' concerns about the deteriorating economy by > > signaling he was ready to lower borrowing costs. > > > Fed officials, who have kept their benchmark rate at 2% since April, > > may have wanted time for their record loans to the financial industry > > and new programs, including purchases of commercial paper, to bear > > fruit before lowering rates. Investors instead perceive the economic > > outlook deteriorating more rapidly, necessitating rate reductions. > > > The declines in US shares the past two days followed pre- market > > opening announcements of fresh actions by the Fed to unblock credit > > markets. On Oct. 6, the US central bank doubled its planned auctions > > of cash to banks to as much as $US900 billion. Yesterday, it unveiled > > a unit to buy commercial paper, debt used by companies for short-term > > funding. > > > Central bankers acted two days before they gather with finance > > ministers from the Group of Seven industrial nations in Washington. > > The timing suggests the central banks sought to avoid any appearance > > of being influenced by governments, said Ted Truman, former chief of > > the Fed's international-finance division. > > > `Before Friday' > > > ``It was clear that if they wanted to do it, they had to do it before > > Friday,'' said Truman, now a senior fellow at the Peterson Institute > > for International Economics in Washington. ``they don't want to see as > > being coordinated by their finance ministers into doing this.'' > > > Both US presidential candidates said they backed the Fed's rate cut. > > Democrat Barack Obama said more was needed and said he hoped the > > global coordinated response to the crisis continued at the G-7 meeting > > of finance leaders in Washington this week. Both he and Republican > > John McCain said the Fed action had to be accompanied by further moves > > to help homeowners. > > > Obama has surged in polls in the past three weeks as the credit freeze > > worsened and global equity markets plunged, with respondents saying he > > would do a better job managing the economy. An NBC-Wall Street Journal > > poll conducted Oct. 4-5 found Obama supported by 49% of registered > > voters, a 6-point margin over McCain. Two weeks ago an NBC-Journal > > poll put Obama's lead at 2 points. > > > Bernanke message > > > Bernanke said in a speech yesterday that an intensifying credit crunch > > means officials must ``consider'' lowering borrowing costs. > > > In more typical market conditions, stocks rally when a Fed chief > > indicates he'll reduce rates. Now, Bernanke's message may have less > > power because traders already anticipated for weeks that policy makers > > would need to make that move, and because of rising concern even rate > > cuts may do little to immediately help banks scrambling to reduce > > their vulnerability to loan losses. > > > ``This is an extraordinary circumstance,'' said Former Fed Governor > > Laurence Meyer, now vice chairman of Macroeconomic Advisers LLC. ``If > > markets are totally frozen it doesn't help. It certainly builds > > confidence psychologically.'' > > > Bloomberg News- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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