Old Project Avalon Forum (ARCHIVE) - View Single Post - Renewed Strength of EURO Threatens Economy

peaceandlove · 03-21-2009, 07:41 AM

World markets mixed on worries about US inflation

By LOUISE WATT
Associated Press Writer

Mar 20, 7:54 AM EDT

LONDON (AP) -- Stock markets were mixed Friday as investors turned cautious amid worries the U.S. Federal Reserve's latest move to combat recession in the world's largest economy will lead to rampant inflation.
By noon in mainland Europe, Britain's FTSE 100 was down 0.4 percent to 3,801.84, France's CAC 40 fell 0.4 percent to 2,765.47, while Germany's DAX rose 0.3 percent to 4,053.89.

Banking stocks, which had surged earlier in the week after the Fed announced it would start buying Treasurys to help open up tight credit markets, fell across Europe on Friday. HSBC dropped 19 percent, Barclays slipped 4.4 percent and Dexia lost 9.5 percent.

"I think some of the luster from the announcements earlier in the week has gone," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, referring to the Fed's move, similar measures in Britain, and proposals by UK regulators to strengthen bank oversight.

"I think some questions are being asked along the lines of 'just how much profit will be taken away from the banks.' There are still the concerns around the economic situation which continues to overhang the market," he added. "Until the employment and the housing market are sorted in the U.K. and U.S. it's going to be difficult to have any meaningful movement."

Article continues: http://www.campaignforliberty.com/wire.php?view=3526

Bernanke tries to soothe small banks' bailout anger
Fri Mar 20, 2009 12:49pm EDT

PHOENIX (Reuters) - The United States needs a safer way to shut down large nonbank financial firms without destabilizing the entire financial system, Federal Reserve Chairman Ben Bernanke said on Friday.

"We have such a regime for insured depository institutions, but it is clear we need something similar for systemically important nonbank financial entities," he said in prepared remarks to a community bankers convention in Phoenix.

"Improved resolution procedures for these firms would help reduce the too-big-to-fail problem by giving the government the option of safely winding down a systemically important firm rather than keeping it operating," he said.

Bernanke said the central bank has "generally been encouraged" by the market response to its myriad of lending programs.

If a newly launched program called the Term Asset-Backed Securities Loan Facility -- or TALF -- works as planned, it should ease credit constraints on consumer, business and mortgage loans, he said.

Source: http://www.campaignforliberty.com/wire.php?view=3534

03-21-2009, 07:41 AM	#2
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	Re: Renewed Strength of EURO Threatens Economy World markets mixed on worries about US inflation By LOUISE WATT Associated Press Writer Mar 20, 7:54 AM EDT LONDON (AP) -- Stock markets were mixed Friday as investors turned cautious amid worries the U.S. Federal Reserve's latest move to combat recession in the world's largest economy will lead to rampant inflation. By noon in mainland Europe, Britain's FTSE 100 was down 0.4 percent to 3,801.84, France's CAC 40 fell 0.4 percent to 2,765.47, while Germany's DAX rose 0.3 percent to 4,053.89. Banking stocks, which had surged earlier in the week after the Fed announced it would start buying Treasurys to help open up tight credit markets, fell across Europe on Friday. HSBC dropped 19 percent, Barclays slipped 4.4 percent and Dexia lost 9.5 percent. "I think some of the luster from the announcements earlier in the week has gone," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, referring to the Fed's move, similar measures in Britain, and proposals by UK regulators to strengthen bank oversight. "I think some questions are being asked along the lines of 'just how much profit will be taken away from the banks.' There are still the concerns around the economic situation which continues to overhang the market," he added. "Until the employment and the housing market are sorted in the U.K. and U.S. it's going to be difficult to have any meaningful movement." Article continues: http://www.campaignforliberty.com/wire.php?view=3526 Bernanke tries to soothe small banks' bailout anger Fri Mar 20, 2009 12:49pm EDT PHOENIX (Reuters) - The United States needs a safer way to shut down large nonbank financial firms without destabilizing the entire financial system, Federal Reserve Chairman Ben Bernanke said on Friday. "We have such a regime for insured depository institutions, but it is clear we need something similar for systemically important nonbank financial entities," he said in prepared remarks to a community bankers convention in Phoenix. "Improved resolution procedures for these firms would help reduce the too-big-to-fail problem by giving the government the option of safely winding down a systemically important firm rather than keeping it operating," he said. Bernanke said the central bank has "generally been encouraged" by the market response to its myriad of lending programs. If a newly launched program called the Term Asset-Backed Securities Loan Facility -- or TALF -- works as planned, it should ease credit constraints on consumer, business and mortgage loans, he said. Source: http://www.campaignforliberty.com/wire.php?view=3534