Here's something you might be interested in.
In early trading Monday morning in Asia (Sun.evening Oct.12 in the U.S.), stock markets reacted positively to plans of major nations to guarantee loans between banks and recapitalize them. U.S. stock market futures were up 2 to 3 percent, although they faded a bit from the Asian opening. On Sunday, leaders of 15 euro-zone nations agreed to a plan that would guarantee loans between banks through next year and allow governments to buy equity in banks. (The lending markets are frozen because banks, knowing their counterparts are holding toxic paper, won't loan to each other.) France, Germany, Australia, and the U.K. are readying plans to guarantee bank deposits and recapitalize financial institutions. The U.S. is working on plans to take ownership positions in banks. A consensus is developing that the $700 billion bailout plan approved by Congress is a bad approach; liquidity injections are needed more quickly.
In early trading Monday morning in Asia (Sun.evening Oct.12 in the U.S.), stock markets reacted positively to plans of major nations to guarantee loans between banks and recapitalize them. U.S. stock market futures were up 2 to 3 percent, although they faded a bit from the Asian opening. On Sunday, leaders of 15 euro-zone nations agreed to a plan that would guarantee loans between banks through next year and allow governments to buy equity in banks. (The lending markets are frozen because banks, knowing their counterparts are holding toxic paper, won't loan to each other.) France, Germany, Australia, and the U.K. are readying plans to guarantee bank deposits and recapitalize financial institutions. The U.S. is working on plans to take ownership positions in banks. A consensus is developing that the $700 billion bailout plan approved by Congress is a bad approach; liquidity injections are needed more quickly.