(Bloomberg) -- New York Federal Reserve Bank President Timothy Geithner said capital markets are still ``substantially impaired'' and policy makers and financial industry leaders must ``act forcefully'' to stem the crisis.
``What we were observing in U.S. and global financial markets was similar to the classic pattern in financial crises,'' Geithner said in testimony to the Senate Banking Committee. He cited ``a self-reinforcing downward spiral'' of asset sales, ``higher volatility, and still lower prices.''
The Fed is scared. They will have to continue to add liquidity. And increased liquidity is bullish for the market.
In an environment of low real interest rates, however, some market sectors will be stronger than others.
More on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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