Current Events in Financial Markets


#1

What do you guys think about the assessment centers at Ibanks: do they ask about the current events as well? I know there are discussions but just wondering how they organise them.

OK.
[B]-why did the central banks pumped cash into the markets and how did they do that(this happened a few days back)? what is your opinion about the outcome of this process?

-unexpected can be expected with Bear Sterns asking for cash from FED. it is a too big to fail bank. do you think it is a direct or indirect effect of credit crunch? how do you relate CCrunch to this situation with BStearns?[/B]

let’s keep this thread sticky with all only important daily FMarkets news


#2

Good questions.

Federal Reserve Cash Injection

The federal reserve had to inject cash into the banking system to prevent the collapse of more banks. This was important to guarantee the deposits of the bank’s customers. In other words, it was ‘bailing them out’. The banks loose most of their value on the stock exchange when this happens, so the shareholders loose their investment.

Bear Stearns

It is unwise to ever consider a firm too big to fail - all business take risks; that is how they make their money. It is undoubtedly a direct effect of the credit crunch -the bank has been lending cash to un-creditworthy borrowers. On the accounts, it would appear that the bank is making a huge profit, but when they ask for the money back, the dodgy lenders default and the bank is left out of pocket. Suddenly, a massive paper profit becomes a terrifying actual loss.


#3

[QUOTE=londonbloke;748]What do you guys think about the assessment centers at Ibanks: do they ask about the current events as well? I know there are discussions but just wondering how they organise them.

OK.
[B]-why did the central banks pumped cash into the markets and how did they do that(this happened a few days back)? what is your opinion about the outcome of this process?

-unexpected can be expected with Bear Sterns asking for cash from FED. it is a too big to fail bank. do you think it is a direct or indirect effect of credit crunch? how do you relate CCrunch to this situation with BStearns?[/B]

let’s keep this thread sticky with all only important daily FMarkets news[/QUOTE]

hey check this site out
Bear necessities: The A to Z of the credit crunch - Invest & Save, Money - The Independent

it explains everything…A_Z of the credit crunch
it may help