Economy
Thursday, August 16th, 2007I’ve recently discovered A Random Walk - Irish Financial Blog and find it an interesting read on a daily basis, especially considering the US sub-prime mortgages, the worldwide credit crunch, the Irish property bubble and so on.
The ECB has to step in and loan €155.85 billion to banks to save them from a credit crunch.
Goldman Sachs has to plug a hole into one of its hedge funds - at least $2 billion
I think the ECB will raise rates at the next meeting. They used their usual codewords “strong vigilance” but in the meantime the credit crunch hit and the ECB gave out extraordinary loans. BUT the central banks work together and the Norwegian bank gave out a few billion too and still raised rates - Norway Raises Key Rate to Head Off Higher Inflation
Are things okay and returning to normal? The Financial Times doesn’t think so - ECB chief fails to reassure markets



