Dec 12, 2007

Alan Skrainka on latest Fed plan to add liquidity

This is a very bullish development for the markets. The main problem in credit markets has not been that rates are too high, but that financial institutions have been unwilling to lend. This added liquidity should relieve some of that pressure.

~ Alan Skrainka, chief market strategist, Edward Jones, "U.S. stocks recover gains after late-session slide; Coordinated actions by central banks designed to add $40 billion in liquidity," MarketWatch, December 12, 2007

(The Fed unveiled a plan Wednesday to add $40 billion in liquidity to the markets, with help from the European Central Bank, the Bank of England, the Bank of Canada and the Swiss National Bank. See full story.)

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