Swiss Central Bank and Bank of England raised the rate today and US FED hinted that “POSSIBLY NO MORE RATE HIKE FOR A WHILE”.
We’ve to admit that we’re in the middle of serious financial crisis and this crisis has started with easing the regulations and restricting the money supply. With all these circumstances, It’s an irony to see that global central banks are still raising the rate.
Today, US FED hinted that might change from now on and Ms. Yellen has changed her mind to secure the deposit.
We’ve to think carefully, why they have changed their strategies so fast.
Do you still remember what had happened in 2008?
Local mortgage companies started into bankruptcy since March, 2007. A year later, March 2008, Bear Sterns collapsed and then Lehman Brothers collapsed 6 months later.
As you can see in this timeline, financial crisis is not happening in just one quick shot.
US Stock market was recovering today. Why? 1) FED hinted to the market, “ May be no more huge rate hike “ 2) US Treasury secretary mentioned “ We will protect the deposit “
