Ben Bernanke in Europe

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Following chemisttree's recommendation, here's the Bernanke thread:

...In the latest effort to ease a credit contraction that has disrupted global finance, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity. It was the second time in three months that central banks from around the globe had launched coordinated efforts.

Wall Street economists were quick to call the new lending facility a step in the right direction, but what's most needed is time for the de-leveraging of billions of dollars in loans globally.

"What we've seen is really a seizing of the money markets and it will help to alleviate this by injecting much needed cash," said Kathleen Stephansen, director of global economics at Credit Suisse in New York. "It doesn't take away the credit crunch because deleveraging will still have to take place. But this will make it a more orderly process."

Policy-makers are particularly concerned that tightening credit conditions, sparked by the U.S. subprime housing meltdown, will curb the flow of money to the people and businesses that power the global economy.

The Fed expanded its securities lending program, offering up to $200 billion of highly liquid U.S. Treasuries to primary dealers, secured for 28 days, and said it could increase the size of the program if needed. It also significantly expanded the types of securities that can be used as collateral for the loans. In effect, the plan allows banks to exchange unwanted mortgage notes for easy-to-sell government securities.

"Is this going to cure what ails the economy? I would guess everyone realizes the answer to that is going to be 'no.' Is this going to be helpful in addressing the strains in financial markets? For sure, the answer is 'yes'," the first deputy managing director of the International Monetary Fund, John Lipsky, told Reuters.
http://news.yahoo.com/s/nm/20080311/bs_nm/usa_fed_liquidity_dc [Broken]

So in other words, all week Americans read about insignificant details about a politician's personal life on their front pages. Meanwhile, a Bush appointee from the mighty Federal Reserve is in Europe begging other central banks to protect the US from market forces! What does everyone think of that? Isn't the US hampered by too much government? :rolleyes:
 
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Astronuc
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Following chemisttree's recommendation, here's the Bernanke thread:


http://news.yahoo.com/s/nm/20080311/bs_nm/usa_fed_liquidity_dc [Broken]

So in other words, all week Americans read about insignificant details about a politician's personal life on their front pages. Meanwhile, a Bush appointee from the mighty Federal Reserve is in Europe begging other central banks to protect the US from market forces! What does everyone think of that? Isn't the US hampered by too much government? :rolleyes:
Well, there are many people in the US like me who have been paying attention to Iraq and the economy, as is evident by our posts in other threads. I do have a set of posts on Iraq awaiting my attention, but I'm on the other side of country for a week, and I won't be able to post them until I return home.

The number of US soliders killed is approaching 4000, and the number of wounded is over 24,000.

The US is very likely in a recession, and Bush even made the stupid comment that his administration anticipated the problem - hence the $150 billion 'stimulus' package, which is too little too late given the magnitude writeoffs and defaults. The Boston Fed apparently determined that 60% of those (presumably in its region) qualified for better, lower interest loans. So we should expect some criminal investigations.

Bernacke and Paulson are slowly admitting how bad things are.
 
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So in other words, all week Americans read about insignificant details about a politician's personal life on their front pages.
I can't believe there are people dying in Tibet under the Chinese boot and all people read about is the value of their houses.
 
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Is that your way of saying the US government is full of hypocrites?
 
Astronuc
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js is sarcastically making the point that most folks are dealing with the own everyday personal issues, and thus usually focus on what affects them directly, such as the economy, the value of their home (if they happen to own a home, or rather a mortgage), any scandal affecting political leadership, . . . .

I've had people tell me that they watch news (infotainment) as a diversion, i.e. in order to get their mind off their own trouble. One former girlfriend told me she watched soap operas and tabloid TV because her problems then didn't seem as bad as compared to those other stories - and she had some significant personal challenges to deal with.


Nevertheless, there are plenty of Americans who have a world view, and are keenly interested in the international or global affairs.
 
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