« 米国発株価の暴落 | トップページ | 世界の株安 »

2008年10月10日 (金)


(Oct. 10, 2008) The Yomiuri Shimbun

Market, players want U.S. to do more

世界同時利下げ 市場が催促する米国追加策(1010日付・読売社説)

The market is demanding strong measures that are sufficient to avert financial meltdown. The U.S. government should decide as soon as possible to inject public funds into financial institutions as capital reinforcement.


Six North American and European central banks, including the U.S. Federal Reserve Board and the European Central Bank, have cut their key policy rates by half a point. Other central banks, including the People's Bank of China, followed suit with their own cuts. It is unprecedented for so many central banks around the world to implement coordinated cuts in key interest rates.


The Bank of Japan also needs to mobilize all possible policy measures while staying coordinated with other countries' central banks.


The current financial crisis, which started in the United States and spilled over to Europe, and the global run on stock markets does not seem close to ending. There is concern that the situation even will lead to a global recession. This worry must have prompted the central banks to make the emergency rate cuts.


Meanwhile, the British government has decided to inject up to 50 billion pounds, about 9 trillion yen, into eight major banks as a measure to salvage them through recapitalization.



Effects only short-term

However, the market reacted coolly to such emergency moves. Stock prices on the New York Stock Exchange on Wednesday did not cease their falls, while the Tokyo Stock Exchange also saw prices plunge Thursday.


Thus, it seems the effects of the coordinated cuts were limited. This is probably because market players saw the cuts as not enough to stabilize markets or to shore up the economy. There are no clues yet in sight on how to fix the problem of bad mortgage-related assets of U.S. financial institutions, which is a key problem that needs to be solved very soon.


U.S. Treasury Secretary Henry Paulson held a press conference Wednesday during trading hours for the New York Stock Exchange. This underscores that U.S. financial authorities are jittery about the current situation.


Saying, "We will use all of the tools...including strengthening the capitalization of financial institutions of every size," Paulson suggested the possibility that the U.S. government will directly inject public funds, based on the recently established Emergency Economic Stabilization Act, into financial institutions that are undercapitalized.


One of the main pillars of the law is the purchase by the U.S. government of bad assets held by financial institutions. However, it does not clearly stipulate that the government will use public funds for beefing up their capital.


It seems that Paulson would like to stretch the interpretation of powers given to the Treasury Department and move to inject public funds.



Time to use public funds

However, an announcement of the government's determination alone is not enough to calm the market or assuage market players' fears. Stock prices plunged immediately after Paulson's news conference. Due to fears of possible resistance to Paulson's plan from the U.S. Congress, which is in its preelection recess, and the U.S. public, the market must be viewing skeptically the question of whether the government can really fix this problem.


Learning from Japan's experience, however, it is necessary for the United States to use public funds to recapitalize financial institutions in addition to the purchase of bad assets. Now is the time for the United States to emulate Britain, which decided to inject public funds into financial institutions.


A meeting of the Group of Seven finance ministers and central bank governors is scheduled for Friday in Washington. The G-7 financial chiefs have to further reinforce their policy coordination and at the same time prompt the United States to take a further measure that proves effective.


(From The Yomiuri Shimbun, Oct. 10, 2008)

200810100126  読売新聞)


« 米国発株価の暴落 | トップページ | 世界の株安 »





« 米国発株価の暴落 | トップページ | 世界の株安 »