Excerpt from: Forex News
|
 |
| January 19, 2009 | | Sterling falls in currency trading on new plan |
Today, the U.K. has announced a new, massive bailout for the financial markets. The new program is means to be aggressive, and will set up asset purchases. Unfortunately, many of these assets are toxic, and that means that investors are wary of the plan.
Calculated Risk offers some of the details of the newly aggressive bailout plan in Britain:
- Consumer car loans will be exchanged for government bonds in an extension of the Special Liquidity Scheme.
- Northern Rock (state owned) will be required to provide more mortgages.
- The Credit Guarantee Scheme will be extended until year's end.
- Billions in mortgage-backed securities will be guaranteed.
Sterling falls in currency trading as plan is unveiled
This new plan offers further proof that the U.K. economy is in big trouble. Things haven't been improving, and this bailout of the financial market simply underscores the point. As a result, the sterling is dropping in currency trading on the FX market as economic recovery is seen as something likely to take place in the far distant future.
| Topic Tags: bailout financial market, currency trading, currency trading FX market, mortgages, securities, sterling currency trading, U.K. bailout | |
|
|
