GLOBAL TURMOIL : 3 reports...worth taking a look [C1]
Amit shah
Hi
Enclosed are 3 reports which could help in understanding the current financial market turmoil. Apologise incase you've already got them.
1) US ECON - State of the Crisis.
Our US team says that do not believe that Treasury and Federal Reserve officials expected the breakdowns in basic market functioning that appear to be under way. Consequently, policy action could be imminent. These measures could include further extraordinary Federal Reserve actions to inject liquidity, possibly involving a lowering or suspension of the federal funds target, and an announcement by the Treasury that it intends to accelerate purchases of mortgage-backed securities.
<<StateofCrisis091708.pdf>>
2) FI STRATEGY - Creation of capital fund to help resolve crisis
Our FI strategists say that the Fed and the Treasury need to broaden their liquidity focus to address the issue of capital to help resolve the crisis. Weighing the pros and cons of the conservatorship model…they think that the creation of capital fund- primarily funded and managed by the Fed/Treasury to provide capital to US Financial companies would be a better option.
<<20080917 Liquidity Crisis - Action Required (2).pdf>>
3) GLOBAL EQUITY - A Downward Spiral
In the global strategy note, our team says that despite moral hazard seeming more of an issue in the debt than equity markets, and global equities already pricing in a significant downturn in earnings, there needs to be some resolution of the current liquidity crisis before the markets can stabilise.
<<A Downward Spiral 170908.pdf>>
Rgds
Rohini
Rohini Malkani
Economist
Citigroup India
Mail : rohini....@citi.com
Tel: 91-22-6631 9876/4001 5404
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