The Fed decreasing interest rate become to 5,75%
— yulyanto • August 21st, 2007
Subprime mortgage crisis in United State of America (USA) has almost finish for temporary, after the Federal Reserve Bank (The Fed) of USA decreasing interest rate till 50 basis point become to 5,75 percent. But it is not valid for investment fund sector in USA, they still have a problem with this crisis.
Mortgage crisis in USA will not happen in Europe, because demand of property leasing are still good enough in there. The subprime mortgage are hipotic the credit guarantee for property ownership who has low ability of debitor. They low ability will be influence the securities default’s for entirely, and so on continue to financial crisis in USA (www.detik.com).
After the Fed inceasing the interest rate, global and regional market was rebound and back again to the normal condition and go for bullish condition. On last Friday (17/08/2007), Dow Jones Index was increase 1,82 percent become to 13.079,08. S&P 500 Index and Nasdaq Index increasing also 2,46 and 2,20 percent become to 1.445,94 and 2.505,03. In Europe, FTSE100 index has increasing too 3,5 percent become to 6.064,20.
In Jakarta Stock Exchange, decreasing of interest rate by the Fed has been influence too the stock market trading and so on increasing the Composite Index too become to more than 2.000 again after the decrease 5,94 percent last week (www.kontan-harian.com).
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