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Can somebody please explain just where this money has come from :-

The World's largest central bans have launched their latest co-ordinated action to calm jittery credit markets.

The US Federal Reserve, the European Central Bank and central banks in UK, Canada and Switzerland will inject billions of dollars into the money markets.

The news cheered investors and US stocks surged more than 3% - their biggest one-day gain in five years.

The injection of more than $200billion is aimed at easing the credit crunch and its impact on the wider economy
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Are the countries printing more money or is this just money that never see the light of day.

Do we have to pay more for this idea?????

What happens in six months if this idea does not work???
 

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sir john said:
Are the countries printing more money or is this just money that never see the light of day.

Do we have to pay more for this idea?????

What happens in six months if this idea does not work???
Yes.
Yes.
6 months from now the governments will all have a shocked look on their faces wondering why the value of the dollar, pound, euro, etc. are worth even less than they are now.
 

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It's more of a policy change than anything else. Although multi faceted the program called the "Term Securities Lending Facility" lends up to 200 Billion for a period of up to 28 days. The typical "Fed Fund Rate" (the one everyone focuses on when they do a rate cut) is a short term rate for money borrowed by banks from the Fed and must be paid back within 24hours..This is huge news for banks and consumers alike which will allow banks more flexibility when loaning money to consumers. It's geared more toward adding liquidity to financial markets including treasury and mortgage back securities to boot... Tup:
 
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