Efforts to remove or isolate toxic assets must be stepped up
Geithner speech lacked specifics needed to be credible
Geithner announces three new programs
Proposed expansion could increase TALF to as much as US$1 trillion
Investments in gold and oil are also set to perform exceptionally well in the next two to three years
Credit markets may have led on the way into the recession, but they are likely to lag on the way out, according to economists with Morgan Stanley.“Banks, in their lending activities, have rarely ever been leaders in economic or market cycles, but are usually followers. Credit growth can be a powerful accelerator in economic expansions […]
Downturn has forced change in spending and investing habits
Temporary reciprocal currency arrangements between the Fed and other central banks also extended
Volume of private capital flows is likely to fall sharply
Risks to global financial system instability have intensified in recent months, the International Monetary Fund says, and it worries that many banks may not have enough capital to weather the economic downturn.“In spite of extensive policies, the global financial system remains under intense stress,” the IMF notes in the latest edition of its global financial […]