Interest crash dive on Bernankes statement

without comments

By up state bonds
U.S. interest rates fell to the ground by stones as the central bank the Federal Reserve tonight announced that it will buy heavily in state bonds to accelerate the end of the recession that has hit the country.

Is this a good plan?
This makes me wonder if this tactic at all is possible to go through with. I mean, without being educated in the financial sector, this kind of step seems to be a panicing act with great ambitions: Speeding up the recession.

Is speed a good thing in this context?
The talk aboute speeding up the recession, makes me wonder, if we are completely sure what will come afterwards. Iknow the theory, but are we sure that the real life economy acts according to the textbook?

Something good came out of it
Simultaneously announcement that the central bank will buy up government bonds to 300 billion. dollars, launching a sharp jump in the stock exchange in New York, where the three major indices all streets in the weather.

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marts 18th, 2009 at 8:38 pm

Posted in economics

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