Financiers countermeasures is very simple: monetary easing, loose, and then relaxed. Almost never financier requirements to raise interest rates, they never asked to cut interest rates. Only cut interest rates, lower financing costs, they can a game of chess to go live. This conference different from the past, with representatives from the big banks, but from the hedge fund industry leader the Louise Bacon (LouisBacon,), the founder of hedge fund Moore Capital Management MooreCapitalManagement. Moore Capital Management is headquartered in New York, under which there are a few pieces of very vigorous hedge fund, tentacles all over the world's major financial center, Hong Kong, London, Zurich has a stronghold in the hedge fund industry is a lot of hills.
The financial crisis in 2008, hedge fund to the winner attitude, while the investment bank of goodwill, has been hit. Wall Street, various people is alternately Starring: dotcom bubble and financial crisis, investment banks and commercial banks play a leading role, there are hedge funds and private equity funds after the stage starring. Wall Street needs Myth: the new economy bubble Internet companies, or cooked up by the subprime mortgage securitization products, hedge funds, credit default swaps.
Large cardinal issues in the capital markets, Germans and Americans are two worldview. Facts have proved that the Fed is to dig Peter to pay Paul, condoning, but the German road leading to a bright, still a suspense. The world worry that before long-term stability in place World Pipe network informed, the euro zone may fall apart, to drastic Merkel, have from the source to solve the problem.
The euro-zone countries finally agreed to strengthen financial integration. Chancellor Angela Merkel's strategy is the first rule, after a temporary solution. She was worried that once the European Central Bank gate advances, the problem countries have no incentive to reform. The United States is a precedent: the Fed continue to rescue Wall Street regulatory reform is stalled, the problem continued backlog economic malaise.
In fact, the New York Fed president, Dooley is the Wall Street insiders. Brother worked at Goldman Sachs for 10 years, only changed, but in 2007, the New York Fed president Gheit Narayan into the regulatory authorities. Away from the financial crisis in 2007 less than a year, the industry is well prepared. Dooley quit at this time, are also considered very grasp the opportunity, just poor the majority of the American people and the U.S. dollar creditor countries. In 2011, the United States a lot of people complain about the food price inflation, said Dooley immediately jump out to look at the price. Dooley's theory, provoke a cry sound. Shouting to go against common enemies, but the state machinery in the United States remains firmly rests in the hands of Wall Street, the decision-making power still lies in the hands of in Dooley.
Hedge fund managers have been trying to spy on the U.S. Federal Reserve decision-making insider in order to grasp the idea of the Fed policymakers, in order to assess the situation and control them. Although there is no evidence that hedge funds according to their intimate relationship with the Federal Reserve to pry inside information, make investment decisions, financial institutions, decision-making is extremely delicate, often it can be felt, the outsider is difficult to understand. Before the September 27 meeting, the Federal Reserve to the participants made a list of questions, perhaps the industry participants through this list to understand the ideological trends of the U.S. Federal Reserve officials.
Deal with the debt crisis in Europe, the Fed is anxious Wall Street worried, think of Wall Street thought. November 29, under the leadership of the Fed, the Bank of England, European Central Bank, Bank of Japan and the Bank of Canada and the Swiss Bank join forces to ease credit. Fed loans of the European Central Bank interest rate decreased from 1.08% to 0.58%, indirectly, to the European Central Bank low-interest loans. Day U.S. stocks rose 4.3 percent. Previously, a large number of Wall Street money to flee the euro zone. Since May of this year, the U.S. cash market fund exposure to the euro area decreased by 42%, 69% reduction in exposure to France. The Fed also urged U.S. banks vigilant not to fall into the euro zone debt quagmire. The Obama administration has objected to even the IMF to use a large number of financial assistance to the euro area. This is strange: are aware of the tiger World steel pipe network editing , and why the Fed is undeterred?
In the period from 2007 to 2010, the Fed at below-market interest grant emergency loans to big banks, Wall Street thus a profit of $ 13 billion. In addition, the Fed has direct purchase of real estate mortgage-backed securities products, at the local blood to prop up the market for Wall Street. At the end of last month, the U.S. securities dealers predicted that the next three months, the Fed will buy $ 500 billion of real estate mortgage loans securitized products. The Fed's sounding reasons: the well-being for the 75 million owners in the U.S. can not let the home prices fell. Many property owners in the United States, the amount of real estate mortgage loans has been higher than the market value of their property. If we really want to help the owners, the money sent directly to them would it be better? However, Wall Street first will not agree. How to benefit Wall Street, financial derivatives held if the owners direct repayment? No home mortgages Americans will not agree: why taxpayers' money to be used for certain categories of people? Fed purchases of home mortgages securitized products, still the benefit of a certain type of person, but around a few bends, most people around confused, uninformed, it is not clear who was who lost, it is not clear who is who non.
The Fed's actions by the Wall Street extended a warm welcome. The Fed's intervention, at least can be spared to the United States financial institutions to escape the machine. Financial crisis in 2008, the New York Fed specially set up an advisory body: the financial markets, investors Committee "(TheInvestorAdvisoryCommitteeonFinancialMarkets). New York Fed officials and Wall Street financiers are a mechanism through which consultation and joint research plans of the capital market. New York Fed President William Dooley (WilliamsDudley,), often at the meetings, listened carefully to the views of Wall Street. September 27, the heads of Wall Street financial institutions and the leadership of the New York Fed opened such a will.