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Stocks Boom on Fed’s Bank Booster
03/11/08 19:07 EDT
By JOE BEL BRUNO and MADLEN READ
NEW YORK (AP) – The Fed promised a $200 billion booster shot for ailing markets – and Wall Street answered with its biggest bounce in more than five years.
The Dow Jones industrials shot up more than 416 points, the biggest single-day point gain since July 2002, after the Federal Reserve announced the move as part of a worldwide effort to help struggling banks and mortgage providers.
Hoping to ease the credit crisis, the Fed – acting with the European Central Bank, the Bank of Canada and the Swiss National Bank – agreed to loan investment banks money in exchange for debt, including slumping mortgage-backed securities.
The idea is to create a market for assets that investors have recently been too scared to buy. That freeze in demand had sent asset values plunging and caused huge losses for some of the world’s biggest banks.
After a series of hefty losses inhe big problem has been the financials, and this helps supply money directly to the banks and may take some of the need for aggressive rate cutting off the table,” said Peter Dunay, chief investment strategist at Meridian Equity Partners. “The Fed is basically going to take the bad loans off the banks’ books, and the market seems to be loving that idea.”
The fed is out of money, at this point they are just printing new money that will likely NEVER get repaid back. This won’t solve any problems at all, just create new ones like inflation and the increase in the cost of living.
The fed is out of money, at this point they are just printing new money that will likely NEVER get repaid back. This won’t solve any problems at all, just create new ones like inflation and the increase in the cost of living.
The fed is out of money, at this point they are just printing new money that will likely NEVER get repaid back. This won’t solve any problems at all, just create new ones like inflation and the increase in the cost of living.
The fed is out of money, at this point they are just printing new money that will likely NEVER get repaid back. This won’t solve any problems at all, just create new ones like inflation and the increase in the cost of living.
