Neither there nor here - the American financial system is stymied

Banks Finansy06-08-2008 No way or that way - the American financial system is stymied monetary authorities of the United States froze in anticipation. Open Market Committee Federal Reserve System (FRS) the USA has decided to leave interest rates at 2%. Nothing else was left to wait - the Fed has been driven into a trap. The interest rate on federal funds (federal funds rate), at which banks - the Fed members provide each other overnight loans, is the basic guideline for determining the cost of borrowing in the U.S.. Prior to that, the Federal Reserve from 2007 continuously to reduce the rate from the previous 5.25% to the current 2%. Such extraordinary measures demanded inflames the credit crisis that erupted in the U.S. mortgage market. Recall, because of rising interest rates the Fed since 2004, borrowing costs rose sharply, that put the least protected groups of borrowers in a difficult position. Dramatically increased the number of loan defaults and bankruptcies of individuals. In parallel, due loans has risen in price dropped the demand for housing, which caused a decline in property prices. Accordingly, banks have emerged with the realization of Mortgages of property of debtors. The magnitude of these problems can be seen from the reports of major U.S. and European investment banks who demonstrate in the last half of multibillion-dollar losses.