Posts Tagged ‘markets’
SUGAR HIGH: Fed Gooses Markets by Printing Lots More Money to Bail Out Europe
FORBES: Wall Street enjoyed a big jump Wednesday morning, after a coordinated action by central banks
around the world to provide more liquidity to the global financial system.
The U.S. Federal Reserve, after a similar effort in September, will “lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points.”
Wednesday’s move from the Fed was matched by corresponding actions from the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank. The new pricing applies to operations conducted as of Dec. 5, and the authorization of the swap arrangements has been extended to Feb. 13.
Here’s What’s Happening Explained in Layman’s Terms . . .
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Watch markets if you want to know what’s happening on Japan nuke crisis: No Meltdown
LA TIMES: U.S. financial markets seem to think they know how Japan’s nuclear-reactor crisis will be resolved: with Armageddon avoided.
A rush for safety early in the week, out of stocks and into U.S. Treasury bonds, began to reverse by week’s end. The Dow Jones industrial average rallied 161 points Thursday and 83 points Friday, to finish at 11,858.52.
The Dow still gave up 1.5% for the week, but that relatively small loss suggests that most investors don’t expect the nightmare scenario to unfold in Japan — meaning a catastrophic meltdown of one or more nuclear reactors, releasing deadly radiation over a wide area and triggering panic around the globe.
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