Markets are euphoric today,as Federal reserve stepped up again to save the world.Boosting liquidity and market confidence by lowering the pricing on its swap program with foreign central banks has long proved to help banks here and overseas overcome liquidity crunches. But it's treating a symptom, not a cause. As long as sovereign bond prices are falling, the market will struggle to find a firm footing. That's a matter of government, rather than central bank, action. "No amount of capital will help if sovereign debt keeps falling in price.
No comments:
Post a Comment