Wednesday, Nov 28, 2007
Institutions hoarding cash
Independent: ECB to pump €30bn into money markets
The European Central Bank has promised to supply the money markets with an extra €30bn (£22bn) in one-week funds, in another indication that the credit crisis is far from over. The ECB sold €178bn of these funds to eurozone financial institutions, compared with the €148bn it had previously said the banks would need for routine business.
The New York Federal Reserve announced on Monday it was implementing several measures to increase liquidity in the parched credit markets. The Fed and ECB actions are designed to quell fears that there will not be enough money available to the markets, as financial institutions "hoard cash".
Posted by alan @ 08:42 AM (355 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. dohousescrashinthewoods said...
"Inflation, inflation, inflation."
"We pride ourselves on boom and bust. There will be no return to economic stability"
;)
2. Aaron_m said...
If they are hoarding cash, then what's the point in giving them more cash? I would have thought that they would only hoard the extra cash or use it to buy gold?
There is no shortage of money, just the difficulty of some borrowers (e.g. a well-run business looking to buy expensive equipment in order to expand) to get credit.
Surely inflation is the big issue here.