Friday, September 16, 2011

Fed bails out faltering Eurozone as world's banks join forces to shore up economy (but what's in it for America?) - 16th Sept 2011

The Federal Reserve today joined forces with the world's banks in a desperate effort to bail out Eurozone’s failing banks.

The Fed joins the European central bank, the Bank of England, the Bank of Japan and the Swiss National bank in their bids to lend funds over the next three months to dig Europe out of its financial crisis.

The Euro immediately surged with the news, which comes on top of earlier support for Greece pledged by France and Germany.

The Dow rallied to finish 1.7 per cent up on Wall Street as U.S. stocks rose for a fourth day.

The S&P financial index jumped 2.6 per cent and the S&P industrial index rose 1.9 per cent. Bank of America gained 4 per cent to $7.33 while conglomerate General Electric advanced 2.8 per cent to $16.08.

The Dow Jones industrial average was up 186.45 points, or 1.66 per cent, at 11,433.18. The Standard & Poor's 500 Index was up 20.43 points, or 1.72 per cent, at 1,209.11. The Nasdaq Composite Index was up 34.52 points, or 1.34 per cent, at 2,607.07.

Eurozone banks are facing major potential losses if indebted countries across Europe default on their loans and in a vicious cycle are struggling with day to day funding pressures.

The move is sure to rattle Americans during a time when it's struggling to fight back from its own financial woes and bank bailouts. Read More