Forex wireless

U.S. Federal Reserve has once again extended the period of emergency lending tools, want to market to provide more liquidity support. Analysts point out that the measure will effectively reduce the pressure on the currency market, the end of the year or other tense moments in the possibility of financing crisis will thus greatly reduced.
New measures to support the greater scope in accordance with the Fed%26#39;s decision, a dealer credit instruments and securities lending tools regular period of use were extended to January 30 next year, while commercial banks for short-term tool for the auction from 28 Days extended to 84 days. At the same time, the Fed also follow the example of 1999 to cope with the Y2K problem caused liquidity crisis risk strategy options for auction, a dealer can use the tool borrow up to 50 billion U.S. dollars.
Fed stressed that in view of the ongoing financial fragility of the situation, published this initiative supported by the target to extend the scope of a dealer.
The Fed%26#39;s decision means that, on the Wall Street investment bank discount window open special measures of time will increase to 10 months. March 17 this year, the Fed decided to use a credit tool dealer, since 1929 the economy since the Great Depression, the first Wall Street investment banks to open the discount window. The measure was originally to be concluded in mid-September.
At the same time, analysts pointed out that the Wall Street investment bank will also continue to use regular securities lending tools to high-risk mortgage bonds as collateral, the Fed was lending a higher level of security bonds; commercial banks through short-term auction tool Federal Reserve short-term loans was the time limit will greatly extend the same.
Ease market liquidity, the Fed worried about the measures introduced at the same time, the European Central Bank and the Swiss National Bank has maintained a coherent with: the two banks announced that commercial banks will be for the short-term auction tools extend the deadline by 28 days to 84 days. The European Central Bank%26#39;s ceiling of the auction for 10 billion U.S. dollars, Swiss National Bank for 2 billion U.S. dollars. Market participants believe that the measures will help ease the European market the dollar liquidity crunch problem.
In fact, two Federal Reserve Bank of Western Europe and the joint action is a reflection of the financial market is very serious situation. After a period of time, the U.S. stock market financial stocks frequent unrest this year, seven banks have cash flow problems because of funding declared bankrupt, 90 banks as problem institutions. In particular, Merrill Lynch %26amp; Co. third-quarter write-down of assets to as much as 5.7 billion U.S. dollars, and plans to 30.6 billion U.S. dollars of unsecured debt bonds cheap Jianmai the news caused the market to more financial market liquidity concerns. The market had been expecting the next few months the real economy in the intensity of the credit crunch will likely increase.
In the financial sector, the loan-to-the losses caused by the crisis also further increase. Statistics show that 20 major cities in the United States in May year-over-year price decline of 15.8%, 22, the second consecutive decline, and even credit cards and student loans have also been seriously affected. In Europe, credit, loan-to-market crisis on the apparent attack, the United Kingdom and Spain also allow the housing market into an unprecedented predicament.
Analysts believe that the Federal Reserve and the two Western European Central Bank jointly issued by the new measures will undoubtedly greatly ease the lack of market liquidity situation. At the same time, in order to increase market liquidity, the Fed had to adhere to stringent monetary policy. Therefore, the Federal Reserve raising interest rates before the end of the possibility of relatively small. (Gao Jian)