ZIRP in the U.S.: Fed Keeps Target Fed Funds Rate at 0-0.25%
- Jan 28: FOMC decided to keep its target range for the federal funds rate at 0 to 1/4 percent, lowest since 1990 when Fed began publishing the rate...The Committee is prepared to purchase longer-term Treasury securities...
- FOMC: Economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
Global Financial Writedowns Exceed $1 Trillion: IMF Revises Loss Estimate Up To $2.2 Trillion From $1.4 Trillion in October 2008
- IMF in January 2009 expects total writedowns on U.S. originated assets to reach at least $2.2 trillion capital shortfall of $500 bn forces banks globally to contract credit by a multiple of that amount (i.e. about 4-5 trillion using Greenlaw/Shin/Hatzius/Kashyap methodology) --> we're only half-way through from the current $1 trillion. Raising the needed amount of capital will be difficult going forward--> IMF estimates...
Aloha, Brad
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