Is The Fed Move Enough To Ease The Credit Crunch?

Is The Fed Move Enough To Ease The Credit Crunch?

The U.S. Federal Reserve and other central banks teamed up to get hundreds of billions in fresh funds to cash-starved credit markets, allowing financial firms to use home mortgages as collateral.

Stocks surged and bonds fell in reaction to the moves, in a sign that the financial markets saw the plan as a viable remedy to ease a crisis that has threatened world economic growth. The
Dow industrials lurched 250-points higher at the start of trading.

In the latest effort to ease a credit contraction that has disrupted finance and rescued the the world economy from a credit contraction, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity.

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