That is, that the liquidity crisis is a real crisis of not rely on others. Meanwhile, the sovereign wealth funds, or hedge funds created by States with resources from the surplus in their accounts, (from mainly oil and gas) as the funds of the United Arab Emirates, Asian countries, Russia, etc., are buying major stakes in American banks to remove jam that have gotten them. Logically, it will continue the story in monthly updates of this dictionary. The first update below: debt insurance. They act as guarantors in all debt issues.
As only are dedicated to that, be them called MONOLINE. They began making official institutions of United States public debt and 5 years ago decided to expand its business and jump into the private broadcasts. Endorse any kind of bonus or vehicle structured (such as those that have quoted above), what has become les the major victims of the current earthquake. The most important insurance companies and now they are going wrong, they are: Ambac, MBIA and ACA Capital. * Updates February 08: the US Federal Reserve has lowered the interest rates to 3%, because what most concerns him is the growth (wants to avoid the recession.) This is equivalent to negative interest rates, because inflation has been 4%. The real cost of money in USA is 3 4 = – 1%. It seems that it will come back down to 2.5%. What happens is that it is beginning to shoot inflation, because of the easy money.
The European Central Bank has kept the interest rates at 4%, because what most concerns him is inflation. Warren Buffet, financial important, it has launched a plan for aid to the monoline, to avoid its rating down. Lower rating in an insurer’s risk is fatal. It is to say: you’re assured of the risks, but not us fiamos. Who says to you? The answer is now clear: Warren Buffet.