Breaking NEWS.. The US to the Rescue
Investors, Traders, Economists and even Government Finance Ministers were shocked today, when Federal Reserve announced a global co-ordinated effort to help ease liquidity and borrowing around the globe. The co-oridnated effort includes the US, EU banks, England, Switzerland and Canada.
The plan to lower prices on dollar liquidity swaps beginning on December 5, and extending these swap arrangements to February 1, 2013.
The effort is meant to “ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the Federal Reserve said in a press release.
The People’s Bank of China also announced a plan to increase liquidity by lowering its reserve requirement ratio for financial institutions by half a percentage point.
It seems that the EU, IMF, and global bankers and ministers have been quietly hard at work arranging a worldwide push to jump start the economy and at the same time to ease the pressure off of governments and banks.
It is the first time that there has been a true global attack plan.
Investors like what they heard and the markets have reacted positively to the announcements this afternoon. Europes markets soared this afternoon Germany’s DAX was upmore than 4%, while England’s FTSE 100 climbed and France’s CAC 40 was up nearly 3%.
There’s a feeling we’ll have a bit of action from the eurozone on the debt crisis, which has, for a change, put markets in a much more positive mood.