Too Little Too Late
The recently passed $700 billion dollar bailout which was supposed to rebuild economic confidence instead triggered massive sell offs in global markets. Investors feared that the plan was too little and too late. While markets around the world fell the US government worked to inject more money into the world’
s banking system, including liquidity needed in the world interbank forex market as well as loosen up frozen credit markets.
Treasury to Increase Bond Sales
The US Treasury Department named a former Goldman Sachs executive Neel Kashkari to oversee the new program. The Treasury Department also announced it would increase bond sales to pay for the huge bailout package recently approved by congress and hastily signed by President Bush. The US Federal Reserve increased a short term loan program to $900 billion dollars. Despite all these moves world markets remained in chaos. Despite economic fears currency markets still offer investors Forex opportunities and the strong US dollar is offering many investors a safe haven.
