U.S. Federal Reserve takes radical action
The U.S. Federal Reserve took action to boost liquidity and stave off market meltdown. The Fed said it would offer the bond market $200 billion in Treasury bonds for a month at a time, accepting ordinary triple-A rated mortgage-backed debt as collateral.
Several major global central banks followed suit with similar moves.
The Wall Street Journal calls the move a “surgical strike” in response to a growing wave of investors selling out of mortgage-backed securities. Global markets made heady gains on the news, and U.S. stocks posted their largest single day of gains in over five years.
Despite the move and the market gains, experts remained skeptical about the prospects for quick economic recovery. The economist Nouriel Roubini writes on his blog that many of the world’s most prominent economists are now subscribing to his estimates - formerly considered extreme - that U.S. financial losses could top $1 trillion.
Wednesday, March 12, 2008 at
The Ponzi shell game has gone belly up. The magician’s financial sorcery will not correct the destructive economic forces that have been put into place to disrupt our economy and drive us back into 70’s era stagflation. The goal is to bring us to our knees so we will be forced to accept the North American Union. The same tactics were used in 1907 and 1929 to usher in soft-Socialism ala Wilson and FDR.