Economic Recovery Measures
As the G-20 Summit gets underway in Pittsburgh, what should we hope to hear from the G-20 leaders?
Following its two day meeting yesterday and today, the Fed’s monetary policy setting body (the Federal Open Market Committee or FOMC) released its concluding statement this afternoon.
Recently, Senate Majority Leader Harry Reid announced his support for the extension of the First-time Homebuyer Tax Credit by signing on as a cosponsor to a new bill that would extend the existing credit for 6 more months. “[Yesterday] we learned that new home sales have increased in Las Vegas, and that’s good news,” he explained.
Today, the Treasury announced the end of the Guarantee Program for Money Market Funds. According to the Treasury, risk of a “catastrophic failure” of the financial sector has receded, allowing some of the emergency funding and guarantee programs to sunset.
This week marks the one year anniversary of the Lehman Brothers collapse, an event that both seriously destabilized and ominously ruptured the U.S. and global financial system. Beginning in 2007, losses in mortgage markets weakened the balance sheets of large banking institutions.