Central bankers move into uncharted territory

National Post ^ | March 4, 2009 | Paul Vieira

[unclebankster]

OTTAWA -- Central bankers from the major industrialized countries have moved in lockstep to flood financial markets with cash in their battle against a decaying global economy, but they do so with little experience to draw upon, heightening the risk that this grand effort could fail.

“Independent measures being taken in a contemporaneous fashion implies co-ordination,” says Michael Woolfolk, New York-based senior currency strategist at Bank of New York Mellon. “There is nothing perverse or desperate about it. It is just that they are running out of monetary policy room to stimulate the economy.”

Mr. Woolfolk’s analysis emerges after Mark Carney, Bank of Canada governor, became the latest convert, with the statement this week that the central bank is “refining its approach” to providing additional monetary stimulus. Prior to the week, “the Bank of Canada had been quite stubborn” about plans to intervene and buy securities, whether debt or equity, says Mark Chandler, fixed income strategist at RBC Capital Markets.

www.canada.com/business

[unclebankster]

I wish those dead beat sub prime people would've just paid their mortgages so the central banks of the world could easily fix the problem.

[Lady GOP]

It is just that they are running out of monetary policy room to stimulate the economy.

Correct.

[Frantzie]

Funny this was held in Ottawa because the Canadian banks are among the strongest in the world now. The Canucks do not give away free homes.

They should stop the importation of Pakistanis and other Islamics. My guess is Canada could be selling citizenship soon for $10,000 to 20,000 or more. They could be another Switzerland. They have lots of oil and water so they can tell the world to get screwed.

Harper is a good man - I wish he was POTUS.