The Treasury Depertment of USA is considering taking an old route for this new problem, that is why it is injecting cash into all those private banks that request it, turning ownership whit the intention of restoure confidence in the financial system. Which is the same decision that nation like England are taking, offering banks like the Royal Bank of Scotland, Barlays and HSBC Holdings $87 billion to shore up their capital in exchange for preference shares, measure that also would provide a guarantee of about $430 billion to help banks refinance debt.All this economic and political decision are become in a coordinated action of central banks around the word to reduced their benchmark interest rates by one-half percentage point, even so some groups are pushing to lower interest rates to nearly zero.
The week close whit the disturbing words of the president’s Bush chief spokeswoman, Dana Perino, associated with the financial rescue plan and how this goes against the natural instincts of the capitalist system: “But when presented with the evidence that the financial crisis about to hit the United States would affect every single American up and down the economic food chain, this president decided that it was important that the government take robust action. That’s why we worked with Congress to establish the rescue package.”
A hail of critics, a hail of ideas for repair it, the collapse of a market that should be perfect or at less adjusted by its self, makes me think that maybe is not the best solution to mainthein a global economy... should we choose a diferent way and move on?
Source, the New york Times: http://www.nytimes.com/2008/10/09/business/economy/10fed.html?_r=1&oref=slogin
2 comentarios:
This is the biggest nonsense in your blog!!
I think that I have to post somewhere... here is somewhere...
well... I think that is unfair this "rescue", because they (bankers) taken trucks with money to their houses and now they are not able to back home and take a part of their own resources to rescue their own property, and all the Americans will have to pay with their taxes this "rescue". Actually, in Spain and Italy, for example, some companies are "broken", but the State pays every year their expansive budgets that they can not afford, as "Alitalia" does since Berlusconi is the prime minister.
Well, this seems a bit long for a summary. I think it would be better to introduce the title of the article and it´s main argument before going into the details. Also, I would have liked to have heard more of your opinion at the end.
I´m with you on the main issue, however. There have got to be better options, but the U.S. Congress never drew up any other ideas.
Some corrections:
A hail of critics, a hail of ideas *about repairing the problem*, the collapse of a market that should be perfect or at *least* *capable of adjusting itself,*--*all this* makes me think that maybe *this cash injection* is not the best solution to *maintaining* a global economy... should we choose a diferent way and move on?
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