| Free-market thinking takes hit from US economic crisis
Traders work the floor of the New York Stock Exchange after the Federal Reserve board interest rate decision was announced on March 18. A deepening economic crisis has led to unprecedented actions by US policymakers that raise questions about how far government regulation should go in a free-market economy, analysts say. .
Becoming Empowered By Learning Financial Basics
Pinching pennies seems to be the job of most Americans these days -- regardless of how much money they make. Mount Zion Baptist Church decided to organize a free financial seminar because so many families within the congregation sought help. Experts in various banking and finance fields conducted workshops that ranged on home ownership, to estate planning to understanding the stock market. Facilitators encouraged participants to get on a budget, invest wisely and establish an emergency fund that ranged from $1,000 to six months' worth of expenses. Tracee Carpenter, Fifth Third Bank of Nashville, said it is important to prepare for different types of unexpected situations including auto and home repairs, illness and unemployment.
Policy Makers Efforts Act To Stablize Carry
Carry has wavered over the past week, but demand for yield seems to have held on strong. Over the past few weeks, traders have honed in on the Federal Reserve’s ongoing efforts to stabilize global credit markets and revive the market’s appetite for demand. Since the panic stirred up by the near collapse of Bear Stearns, policy officials have taken dramatic steps to fortify the foundations of the global financial markets.
The Fed cut its benchmark and discount rates 75bp, announced a larger boost of liquidity in the market and broadened its terms of acceptable collateral for the Term Auctions Facility loans. While there have been efforts made outside of the US to improve conditions, these policy changes have no doubt had the greatest impact on overall risk sentiment and in turn demand for yield and carry.
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