Tuesday, 9 August 2011

Fed's Message to Markets: 'Stand on Your Own' Now

With Federal Reserve signalling another 'sad' news of maintaining low interest rate till 2013 shows that the economy still have a long way before standing up by itself. In addition, an unforeseen message to the markets on Tuesday sparks the debate on whether the Federal Reserve will start a new version of Quantitative Easing to spur up the economy, or is the Federal Reserve running out of patient with the economy? The statement: "We'll keep interest rates low as long as you want, but outside of that you're on your own", really will let you start to ponder if there are really no more solutions to the high unemployment and how to repair the fragile economy.

Perhaps the message they trying to send is to signal to all the Too big to fail companies, that the 2008 bailout program may not happen this time.

Again, which is too big to fail? Corporation or the country's economy? You decide for yourself.


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