Busted: Bankers and The Global Economy

May 16, 2008

Don’t Be Spooked, Don’t Give Up

Filed under: banking, federal reserve, investment, money — Tags: , , , , , — digitaleconomy @ 12:18 pm

Federal Reserve chairman, Ben Bernanke, urged banks to prevent deeper damage to the economy by continuing to raise capital despite losses from the credit crisis. “Firms are hunkering down,” he told a conference in Chicago. “They have at least partially replaced the losses with new capital raising, but not entirely. They are being rather conservative in making new loans, which has implications for the broader economy.”

Mr Bernanke and the US Treasury secretary, Henry Paulson, have repeatedly said firms should keep increasing their funds, seeking to alleviate the impact of the credit crunch.

Raising investment capital is the only real hope (more…)

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