Sentiments have plunged the market again into a pit.Tumble is happening at Galatial speed,with out any remorse, and investors just don't want to risk there money with the market.
Since last couple of days investors have taken the money out of Indian stock markets plunging the Indian rupee 10% against the dollar.
Gold Prices have also come down, with people selling gold to lay their hands on cash.
Though ideally with the buying of long term treasury bonds, and and sell short-term bonds to help stimulate lending and growth.
The aversion to riskier assets helped prop up the dollar in foreign exchange markets.People are saying that companies and banks are in a good financial health, however it is the politicians who are making the mess out it, with inaction or no-action.
The Fed announced plans to try to push long-term interest rates down by purchasing $400 billion in long-term Treasury securities with proceeds from the sale of short-term government debt, saying the economy clearly needed help. By reducing the supply of long-term Treasuries, the Fed intends to force investors to accept lower rates of return on the ultra-safe securities, or to move their money into a wide range of riskier investments that could do more to promote growth.(NY times)
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