Article Score0

Will investment firms suck that money up and put it into stocks or do they have a better way of making money from it that puts them at less risk, like buying up real estate at bargain basement prices?

2 Thoughts on What will the $500 Billion influx of credit from european banks do for the US Stock Market?
  1. Reply
    school bully
    December 13, 2012 at 9:12 pm

    barrowing money from ourselves is bad enough if we start barrowing from foregin markets well only expand the european union to enclude the united states of briton/germany/france who ever buys our country

  2. Reply
    magnumxcalibur
    December 13, 2012 at 9:33 pm

    I dont think so. Even after fed and EU central bank cut the interest rates recently, the prime mortgage rate and the LIBOR rate actually increased this month, instead of decreasing. Which means, the shortgage of cash in financial markest is so severe that the free up of cash from the lowered fed funds rate (coupled with cash pumped by US & EU) has already been used up and financial institutions are demanding more money. Where did the used up cash go to? To fund the payback of loans (interbank and asset backed securities, etc) within the financial markets.

    And the financial market is still demanding money, which clearly means, that the excess money that will be released into the market is more likely to used up to strengthen working capital and fund loans and debt to corporations impacted by the credit crunch, rather than to fund investments. A very small protion of such money will be used for investments & stock market, I reckon.

    Leave a reply

    Register New Account
    Reset Password