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Better late than never

The American Government started out creating a help package in the cooling water og Fanny May and Freddy Mac. Now finally the American politiciens have sent 800 billion dollar out to the last link of the financial system – namely the consumers. This link being the home owners and consumers are important when wanting to turn the financial situation around.

Forcing the interest rates down

Whereas the first financial package was directed toward the ailing financial sector, the American Central Bank this time expects to spend 600 billion dollar buying up debts, wich either are issued or secured by public controled  mortage credit companies. read more about the new financial help package i the US

Meeting about the interest rate

Today the bigwigs of the European Central Bank met to discuss weather the interest rate binding the menber states of the European union should be lowered. They did however decide not to lower the rent as many experts allready had predicted.

The main objective

The reason that the decision of not lowering the interest rate was made is not immedeately easy to understand. The main objective of the European Central Bank is not to secure generel wealth amongst people, but to make sure that the inflation is under control. The inflation controls the economic develpoment in the long run, wich is why, it is very important that it does not rice uncontrolled. read more about the recent meeting in the ECB