John wrote:It's all just a gambling addiction, isn't it?
CHAIRMAN BERNANKE. So I’m not going to get involved in political rhetoric. I’m just going to stay completely away from that. I have a job to do, and as long as I’m here, I will do everything I can to help the Federal Reserve achieve its dual mandate of price stability and maximum employment. That’s my answer to the last part as well. I’m not going to be thinking about hypothetical situations in the future. In the case of savers, you know, we think about all these issues, and we certainly recognize that the low interest rates that we’re using to try to stimulate investment and expansion of the economy also impose a cost on savers who have a lower return. And we do hear about that, obviously, and we do think about that. I guess the response I would make is that the savers in our economy are dependent on a healthy economy in order to get adequate returns. In particular, people own stocks and corporate bonds and other securities as well as, say, Treasury securities, and if our economy is in really bad shape, then they are not going to get good returns on those investments. So I think what we need to do, as is often the case when the economy goes into a very weak situation, then low interest rates are needed to help restore the economy to something closer to full employment and to increase growth and that, in turn, will lead ultimately to higher returns across all assets for savers and investors. So that’s—I think that’s how we would explain it.
jcsok wrote:Hig - I will be short July 17.
Spain vows to use bank bailout for deep clean-up: http://www.reuters.com/article/2012/07/ ... 4Q20120710
Reuters) - A euro zone bailout for Spain's crippled banks paves the way to clean up the financial sector within 18 months and will also put the economy on a path to recovery, Spain said on Tuesday.
Euro zone finance ministers agreed on Monday a rescue package of up to 100 billion euros ($123 billion) for Spanish banks devastated by a burst housing bubble.
"This puts us in a position to clean up the Spanish financial system that I think is going to go very deep," Economy Minister Luis de Guindos said after the meeting in Brussels, where ministers approved the deal and will sign off on it on July 20.
Higgenbotham wrote:Buffett discusses the LIBOR scandal.
Users browsing this forum: No registered users and 1 guest