|12-12-2007, 01:31 PM||#1|
Speak Softly and...
Join Date: Aug 2005
Location: Miles City, Montana
If at first you don't succeed...
...in manipulating the financial markets, try, try again. When is enough enough?
The Fed says it will add liquidity to the global markets, sending the Dow climbing after Tuesday's big drop.
December 12, 2007 -- 12:00 ET
[BRIEFING.COM] Stocks are sharply higher at midday after the Fed unexpectedly announced before open that it will be coordinating with four other Central Banks to add liquidity to the market.
Investors didn't like the Federal Reserve's move Tuesday afternoon -- but today's news seems to be a different story.
The Fed's announcement on Tuesday that it was lowering the federal funds rate by a mere quarter of a percentage point -- to 4.25% -- disappointed investors and sent stocks plunging.
But the Fed said this morning that it will join forces with four other central banks, including the European Central Bank, to add liquidity into the global money markets.
At 11:45 a.m. ET, the Dow Jones Industrial Average had soared 152 points to 13,584 after plummeting 294 points Tuesday. The Dow had been up as much as 270 points earlier this morning. The Nasdaq Composite Index was up 46 points this morning at 2,698 after losing 67 points Tuesday; the Standard & Poor's 500 Index had jumped 22 points to 1,500.
"The course the Fed was on didn't seem to be working," Doug Peta, market strategist at J. & W. Seligman, told Bloomberg News. "We've got this new medicine we can try. (((What a great line!))) I think we all can celebrate that."
The Fed's latest move is intended to help foster confidence in the markets while easing pressures in the lending markets.
The Bank of England, the Bank of Canada and the Swiss National Bank are the three other banks involved in the liquidity plan.
|12-12-2007, 02:21 PM||#2|
A verbis ad verbera
Join Date: Mar 2006
Location: Long Beach
This is good news why are you twisting it negative. What this prooves is that Europe understands without a strong American economy none of the worlds markets can be robust. If the Fed had cut rates anymore it would have been worst for the dollar. Right now the trade deficit is finally shrinking so you don't want to cut rates too much or you could risk that.
No economies will be good if our economy is not good.