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mirage
Veteran |
13-Mar-2008 09:01
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Quotes: Financial system may need public funds-IMF's Lipsky Reuters - 26 minutes ago He said the U.S. central bank had acted "appropriately." The European Central Bank, which has kept rates on hold because of concerns about steep inflation, could respond "flexibly if downside risks to growth intensify and inflation risks decline," Lipsky said. (Additional reporting by Emily Kaiser, Editing by Neil Stempleman and Carol Bishopric) - WASHINGTON, March 12 - Governments need to be ready to use public funds to prop up struggling financial markets, a senior International Monetary Fund official said on Wednesday, acknowledging that monetary policy may be less effective in the current credit turmoil. It is the closest the IMF has come to recommending that governments be prepared to step in beyond current measures that central banks are using to add liquidity to ease stressed credit markets. However, IMF First Deputy Managing Director John Lipsky, maintained he was not advocating a bailout. "We must keep all options on the table, including the potential use of public funds to safeguard the financial system," Lipsky said in a speech to the Peterson Institute for International Economics in Washington. "While I am not advocating the use of taxpayer funds for individual banks, I fully recognize an appropriate role for public sector intervention after market solutions have been exhausted." The IMF also stood ready to use its funds, if needed, to help countries cushion the blow but for now was working with other global institutions, such as the Financial Stability Forum, to develop measures to repair the financial system. Asked later to elaborate on the use of public funds, Lipsky said: "The idea may be appropriate to think in terms of more direct support for the global financial system in a way that would be effective and consistent." The Federal Reserve and four other central banks on Tuesday vowed to pump fresh funds into cash-starved credit markets. Tightening credit conditions, sparked by the U.S. subprime mortgage housing meltdown, have threatened the global economy. The Fed expanded its securities lending program on Tuesday by offering up to $200 billion of highly liquid U.S. Treasuries to primary dealers and widening the types of securities that can be used as collateral for the loans. Effectively, it allows banks to exchange unwanted mortgage notes for easy-to-sell government securities. After seven months of credit turmoil, Lipsky said there was little doubt that risks could escalate and decisive policy action was needed. The first priority, he said, was to restore the normal functioning of financial markets and steps are needed to make sure banks are adequately capitalized while also increasing their transparency. "Even as these financial sector policies take hold, the global economy-- and advanced economies in particular --will continue to face pressures from tightening credit conditions," he said. "If so, there is likely to be a role in some countries for stepped-up counter-cyclical macroeconomic policy measures to help support demand." He said monetary policy alone may not be enough, and all options -- including the use of public funds -- should be considered. 'THINK THE UNTHINKABLE "Policy makers as a matter of course need to 'think the unthinkable,' and to consider how they would plan to react if contingencies arise," he said. "The need to prepare more systematically for potential risks has been demonstrated amply during the past few months." Lipsky said Tuesday's coordinated efforts by world central banks to unclog financial markets were "helpful," but monetary policy may be less effective in the current crisis and countries should consider temporary fiscal measures. "In the United States, where growth has slowed significantly, the temporary and targeted fiscal stimulus should help support demand," he said. "Of course, the rest of the world will not be immune to the slowdown in the United States, especially if it becomes serious. In these circumstances, contingency planning is also required...we are advising our members to consider whether they have room to adopt temporary fiscal measures, if needed." He said the current turmoil underscored the need to identify "contingent risks" that could threaten global stability. He said borrowing costs in the United States remained stubbornly high even after Fed interest rate cuts. He said the U.S. central bank had acted "appropriately." The European Central Bank, which has kept rates on hold because of concerns about steep inflation, could respond "flexibly if downside risks to growth intensify and inflation risks decline," Lipsky said. (Additional reporting by Emily Kaiser, Editing by Neil Stempleman and Carol Bishopric) |
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idesa168
Elite |
13-Mar-2008 08:30
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They definitely have more than US$200 billion to burn. The Banana man (Bernanke) has been printing money like there's no tomorrow. What is the real value of the US$200 billion? Why dun print another US$500 billion to shore up the economy? |
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OneSharer
Veteran |
13-Mar-2008 06:25
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DJIA 12110.24; -46.57...shifting my SELL hope to BUY. One good thing about SJ -- even when you're sleeping, there's someone keeping a lookout for you. Thanks SJunkies. |
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cyjjerry85
Elite |
13-Mar-2008 03:50
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Stocks give up gainsWall Street abandons rally attempt late in the session as investors eye record oil and gas prices.NEW YORK (CNNMoney.com) -- Stocks erased gains, turning lower near the end of the session Wednesday as record oil and gas prices countered an attempt to rally for a second session in a row. Cardillo said that Tuesday's Fed announcement had sparked a big short-covering rally, and that whether it continues through the end of the week will depend on the economic news, including the Feb. retail sales report due Thurs. morning. Oil prices rebounded in the afternoon to touch an all-time trading high of $110.20 a barrel. Oil had fallen in the morning after the government's weekly oil inventory report showed a surprise jump in crude supplies. Meanwhile gas prices hit an all-time high. |
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cyjjerry85
Elite |
13-Mar-2008 03:41
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DOW looks worrying...really not very confident with the Fed actions already... |
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cyjjerry85
Elite |
13-Mar-2008 02:12
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see CNN Money reports...that says the worst is not over yet ..especially for banks... |
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teeth53
Supreme |
13-Mar-2008 02:04
Yells: "don't learn through life, learn to grow with life " |
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Look like DOW opening is mixed.... 10YRYield: 3.5%
OIL$
US $1 EUR = $
2:02:46 PM ET 03/12/2008 © BigCharts
10:36am: Wall Street's big move Tuesday doesn't mean the worst is over for stocks...especially banks. But there are some values for cautious investors. more
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cyjjerry85
Elite |
12-Mar-2008 23:41
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it may signal a good beginning ..just tt dunno when will be the profit taking day...and we are still looking forward to next week Federal meeting outcome |
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louis_leecs
Elite |
12-Mar-2008 23:20
Yells: "half cash" |
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dow jones up more than 100point,,,,,,,,,,,confident is back,,,,,,,,,,,cheers,,,,,,,,,,,,,,,,,,happy everybody,,,,, |
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viruz7667
Senior |
12-Mar-2008 23:14
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YA!!!!HOORAY! CHEERS!! DOW UP 130+++ |
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elisa28
Member |
12-Mar-2008 23:12
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+125 points . |
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elisa28
Member |
12-Mar-2008 23:09
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Dow is up +105 points. Yeahhhhhhhh |
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viruz7667
Senior |
12-Mar-2008 22:55
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ya!!! too excited.....cos now still early mah....wish for more and closing! :P |
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jasonrxz
Senior |
12-Mar-2008 22:51
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thought this is wat u want? swee swee close high high,,,, cheers huat ar,.... 100 pts maybe? 
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viruz7667
Senior |
12-Mar-2008 22:45
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crazy liao! up up up all the way~...
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yes888
Member |
12-Mar-2008 22:19
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a dose of Viagra keep old man standing strong |
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elisa28
Member |
12-Mar-2008 22:05
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Dow is now down -13 points. |
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elisa28
Member |
12-Mar-2008 20:43
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Stock rally runs out of steamFutures suggest slightly higher start for stocks just a day after the Fed's move to inject liquidity sparked sizzling rally. |
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viruz7667
Senior |
12-Mar-2008 20:36
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i juz hope for DOW to close Green .......happy liao |
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Blastoff
Elite |
12-Mar-2008 20:19
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DOW to open higher after future indicates higher... Wonder how much?? |
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