U.S. government to save the market forced a new journey

Since last year, the Fed's seven consecutive interest rate reduction, the direct result of the depreciation of the dollar, in this one, the loan-to-crisis has not only failed to eradicate, but inflationary pressures one after another, the "rescue" Zhangxiushanwu in the United States Government, Must also embark on "new journey to save the market."

In view of the market, the economy and inflation prospects facing the uncertainty of the dilemma, the Fed on June 25 decision to keep interest rates unchanged at 2 percent. This is the Fed since last September lowered interest rates seven consecutive times after the first change in interest rate reduction policy. July 16, the U.S. Federal Reserve Board (Federal Reserve, referred to Fed) Chairman Ben Bernanke reiterated that the U.S. economy is still facing many difficulties, that deal with these risks is still the main task. It is expected that the U.S. government will continue to hold high the policy tool, the loan-to-face in the爆出the "monster" to Xiangfu.

Recalling the credits since, the U.S. government left people with a "vigorously killer," the distinct impression. "Killer"忙活after a while, the loan-to-crisis once Jianhao, but Haojingbuchang, and the loan-to-crisis somewhere in the "trouble" and "killer" is the first time arrived. Since last year the U.S. economy is in such a difficult Xianxianghuansheng in Duobu.

The crisis erupted after the loan-to-face predicament, the U.S. government busy不已. First, the Fed lowered interest rates substantially in order to restore market confidence and prevent the economy from sliding into recession. Last year in September to the end of last year, the Fed lowered interest rates three times in a row, the federal funds rate down to 5.25 percent from 4.25 percent. Since last December, the Bush administration signed the "mortgage debt relief Law," requiring banks to waive part of mortgage loans, mortgages and announced a relief plan.

In the Fed for relief, to the end of 2007, loan-to-crisis has a certain signs of easing, but Haojingbuchang. Early this year is the dark clouds over the Citigroup, Merrill Lynch and UBS, respectively Yukui 9.83 billion U.S. dollars, 9.8 billion U.S. dollars and 11.4 billion U.S. dollars, the bank's loan-to-Jukui to the crisis and into a quagmire.

The Bush administration and the Fed has increased the loan-to-crisis "Dasha", and fiscal and monetary means of the two major two-pronged approach, the Bush administration and Congress quickly passed a total of 168 billion U.S. dollars to stimulate economic programme. For some buyers were unable to housing loan and the confiscation of the situation, the Bush administration is working with major lending institutions, aimed at reducing the loan burden on home buyers. U.S. Federal Reserve is a rare meeting between the two 75 basis point rate cut, and nine days of the regular meeting再降50 basis points.

With the U.S. government's fiscal and monetary policies to gradually show results, the first half of the U.S. economy into recession worries slowly in retreat by. The first quarter, U.S. economic growth annual rate of 1%, the growth rate higher than the fourth quarter of last year's 0.6 percent.

In mid-March, the loan-to-the "third wave" outbreak, the fifth largest U.S. investment bank Bear Stearns to two U.S. dollars a share, the low-cost "Jianmai." To the Fed-led rescue operation is the main force more quickly. Bear Stearns incident occurred one week before and after the time, the Fed three "unconventional" to save the market, on the one hand to the banking system to inject capital, on the one hand to help those most critical of the financial institutions out of difficulties. March 14, the Fed once again announced a rare tripartite financing plan for the recognition of mobility "significant deterioration" of Bear Stearns to provide emergency financing to 30 billion U.S. dollars. Monetary authorities on individual financial institutions to rescue the situation, this century has not yet had a precedent. March 16, the Fed announced that in order to increase market liquidity, the discount rate from 3.5 percent down to 3.25 percent.

U.S. economy in the second quarter of this year had improved signs, which allow investors to the U.S. economy with optimistic estimates, but such optimism quickly and breathing to stop. Recently, the loan-to-crisis is the U.S. government "urgently Huang Huang," June Lehman Brothers shares avalanches, the total assets of more than 32 billion U.S. dollars of IndyMac Mortgage Bank was taken over the premises and the United States and Fannie Mae recently in crisis, the two The company's shares last week near the "waist cut," Merrill Lynch of four consecutive quarterly loss, a loss of 2 times the expected level, the crisis is frequent, urgent sound alarm.

Faced with coke head of the U.S. economy, the U.S. government the "killer" Some赤膊battle, the U.S. Treasury and the Federal Reserve launched the emergency of the two mortgage giants Fannie Mae and premises of the United States and the rescue plans. The U.S. Senate on July 11 approved a total 300 billion U.S. dollars of the rescue plan to help hundreds of thousands unable to pay for on the buyers, and by strengthening the mortgage company's real estate market suffered ease the regulatory impact. On the 13th, the United States has introduced a number of child care Fannie and premises of the U.S. measures, including the two institutions to provide direct loans and financial support, the United States permits the SEC for the two companies "naked short selling" to the limit, Measures will be in the July 21 entry into force, and continued for 30 days.

Perhaps this is based on or before the cumulative "rescue" effect, the new release of the "World Economic Outlook latest forecast," the latest version of the second half of the U.S. economy weakened the movement of pessimism. The report said, the United States in 2008 and 2009 economic growth rate was 1.3 percent and 0.8 percent, compared with the April expected to increase 0.8 percent respectively, and 0.2 percent.

As comic timely and effective measures, the surface of the U.S. economy into recession began cooling the heated discussions. Economists believe the loan-to-crisis is likely to only make the U.S. short-term economic contraction or recession, "deep recession" the possibility is not big.

In dealing with the loan-to-crisis, the so-called Cairns visible hand, the U.S. government was the dazzling play of the global integration of the change, the U.S. Government's "killer" role, we sent blessings. In the current economic development in some of the problems, we should also with an open mind to thinking.