Monday, Mar 17, 2008
Fed cuts discount rate by 0.25%
Reuters: Fed takes emergency steps to help financial system
The U.S. Federal Reserve on Sunday announced emergency measures to stem a fast-spreading global financial crisis, tapping tools last used in the Great Depression to pour funds into cash-starved Wall Street firms. The Fed cut the discount rate it charges on direct loans to banks to 3.25 percent from 3.50 percent and set up a new program to provide cash to a wider range of big financial firms previously unable to borrow directly from the central bank. I doubt this move will work.
Posted by who stole my pension? @ 05:56 AM (743 views) Add Comment
10 Comments
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1. bystander said...
Why has the Euro risen again to a new record high against sterling, when it is only the FED making moves, and why are we not hearing of this record rise on the BBC or even on Bloomberg. Is this a cover-up, conspiracy??? Each day that goes by without a word of these new record highs and no mainstream reporting I begin to believe my initial reactions more and more. Crash and Merv are devaluing the pound in your pocket, to reduce the borrowed debt, that should never have been borrowed in the first place. I read that so far there have been 5bln GBP worth of M&A in the UK, but still sterling drops. Germany is the only strength in Europe, but still the Euro/ deutchmarc rises???? Any answers.
2. alan said...
@bystander,
I thought I'd seen a misprint when I checked Euro vs Pound rates 5 minutes ago! No site has mentioned it yet!
I guess a spin off from this will be to force Trichet to cut by 0.25% ?
3. cornishman said...
Bystander - my take on it is that banks and the banking system in general are in the sh*t. The UK economy is based mainly around money/banking. Therefore sterling goes down.
Others will probably have other ideas!
4. techieman said...
aha Alan Alan Alan - a misprint :-) that must explain it - yee of little faith.
5. techieman said...
Maybe we have rats hiding behind the sink that have eaten all the cockroaches? The market decides - am expecting G- intervention soon - once the Euro upmove has dissapated, then the shorts get hammered (for a short while at least) . That may be right or wrong but thats my guess.
6. cornishman said...
g - intervention?
7. techieman said...
Cornish - yes G7 - G10 - G5.625 or whatever i.e Group of x number of industrial nations. Said this on Friday, my views already documented. The Central banks will give the shorts a bit of a kicking - they havent intervened for a while and i think thats on the cards.
8. alan said...
@ techieman,
I respect your views and response.
"There is persistent credit uncertainty. Market players have been repeatedly let down which shows the sub-prime mortgage problems are so deep-rooted," said Atsuji Ohara, global strategist at Shinko Securities in Tokyo.
I detect some deep distrust in the market and it's aimed at the Fed and the US Bankers on Wall St.
9. techieman said...
Sorry Alan - am not taking the p**s - everybody is entitled to a view - agree to disagree, although short term i thought we were in unison. Bonne Chance mon ami.
10. cornishman said...
techieman - thanks. With it now, just didn't follow the shorthand!