Real Wealth Society

Sunday, December 23, 2007

Credit Crunch success requires lower Dollar By Greg Silberman

How worried should we be? Gold stocks and the stock market continue bleeding. Not a day goes by without fresh cash being injected by some central bank somewhere. Where can we invest a) safely and b) to profit from the volatility?

Let’s see?

• We’ve had Treasury Secretary Henry Paulson’s plan to freeze interest rates on a limited number of "teaser" subprime loans for 5 years.

• We’ve had the Fed, ECB, Canada and Swiss Central Banks making money available via forex swap lines.

• Rate cuts in the US, Canada and England to stimulate borrowing.

• We’ve had a $40 billion Fed ‘auction’ to lend banks money.

• And this week we had the ECB make an unprecedented E350 Billion available to help 390 private sector banks with year-end rollovers.

Money is raining from the sky and it’s no drizzle, it’s a veritable flood. Yet the credit problems persist. What’s going wrong?



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