Word: fed
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Dates: during 2000-2009
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...turnaround? It comes down to this: Banks need money. The U.S. government has it. Or can print it. So in addition to the end-around plans to buy mortgage securities and other toxic assets that Paulson and Fed Reserve Chairman Ben Bernanke have been devising, why not go with a more direct approach...
...companies with new capital, governmental intervention in the credit crisis has continued and even grown as other countries step up their own efforts to guarantee bank accounts and bolster financial firms. In a coordinated swoop, governments around the world cut interest rates; two days ago, in the U.S., the Fed took the unprecedented step of saying it would start buying commercial paper, short-term corporate IOUs, in yet another attempt to thaw frozen credit markets...
Silver linings, alas, aren't liquid assets. And so, the Dow Jones Industrial Average scratched its head over how to interpret the decision by six central banks, including the Fed, to lower their key lending rates - the average moving first slightly up, then down, then up again till the last 15 minutes of the day when suddenly, it all came back down, closing down more than 189 points...
...Fed's decision to cut interest rates could cheer Asian investors concerned that a deep economic slump in the West will derail Asia's export-driven economies. The quandary facing Asia's policymakers is that credit is tightening and stocks are plunging due to circumstances mostly beyond their control. "Central banks in Asia don't have the ability to fix the problem," said Kirby Daley, senior strategist at financial services firm Newedge Group in Hong Kong...
...question now is whether or not the Fed's rate cut is enough to reverse the markets' downward spiral. Many analysts in Asia say it is not. "I don't think that the coordinated rate cut will work," said JPMorgan's Kanno. "The only thing it could do is to buy time. Monetary policy doesn't work anymore, once confidence is lost." Kanno and other observers in Japan - recalling their own painful financial crisis in the 1990s - believe the solution needs to be far more dramatic. They advocate that the U.S. government directly invest taxpayer money into private financial firms...