Thursday, December 20, 2007

ECB Injects 500 Billion Euro In Banking System

European Central Bank has injected 500 Billion Euros in the banking system to sooth the nervous investor sentiment due to fall out from US subprime crisis. This will go a long way in calming the turbulance presently prevailing in the global credit and financial markets. Few days back, Morgan Stanley wrote off huge losses due to subprime mess and markets expects more institutions to report more such incidents and hence are jittery. Equity as well currency markets are very volatile for the past few weeks and will remain so unless there emerges clear policy initiatives to contain spread of this mess and also that in future crisis of this magnitude does not happen.