Fed Taking Steps in the Right Direction?

Fed, 4 other central banks take steps to help credit markets

By Greg Robb

WASHINGTON (MarketWatch) — The Federal Reserve announced plans Wednesday to ease elevated pressures in credit markets. The Fed will inject cash into the markets through auction of short-term funds. The Fed also announced foreign exchange swap lines with the European Central Bank and the Swiss National Bank. The Bank of Canada is also a partner in the liquidity plan. The first auction will be held on Monday Dec. 17

 The Fed’s announcement today  in my opinion is a good idea. I believe that with the opening of liquidty into the market coupled with the Rate Freeze Plan will help alleviate the pressure and the downturn in the housing market. The influx of liquidty and the continued Fed Rate cut will assist bringing better rates and deals to buyers. This should have a cascading effect resulting in stablizing of housing market downturn. Only time can tell but I feel that the markets will respond positively to these decisions in the long turn.

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2 Responses to “Fed Taking Steps in the Right Direction?”

  1. John Masters Says:

    Interesting stuff here

  2. Mary Says:

    I stumbled here by accident but will stick around!

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