Published: August 16 2007 14:09 Last updated: August 16 2007 18:08
US stocks plunged on Thursday after Countrywide, the beleaguered mortgage group, said it would have to draw on $11.5bn of credit and an official report showed new homebuilding dropped to a 10-year low in July.
The market jitters over the fallout from the subprime mortgage crisis were further fuelled by a strong statement from William Poole, president of the St Louis Federal Reserve, who denied that the subprime issue pointed to a systemic crisis in the financial system and said only a “calamity” would justify a cut in interest rates.
However, a senior Federal Reserve spokesperson in Washington said Mr Poole’s views did not represent those of the central bank’s policymaking Open Market Committee as a whole. More...
Story courtesy of The Financial Times
Other relevant links
Market meltdown continues (Toronto Star, Aug 16, 2007 01:43 PM)
Heavy losses sweep world markets (BBC, 16 August 2007, 19:13 GMT 20:13 UK)
Russian central bank intervenes (FT, August 16 2007 15:12)
ECB injects €95bn to help markets (FT, August 10 2007 04:17)
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