Global Economic Watch Money and the Financial System October 15, 2009
Economic Crisis Real gross domestic product (GDP) declined 0.7 percent in the second quarter of 2009, following a 6.4 percent decline in the first quarter
Monetary Policy
Credit Condition LIBOR, other interest rate indexes Ratings methodology Credit Condition This week Month ago Year ago Bond Buyer's 20 bond index 4.06 4.33 5.47 FNMA 30 yr Mtg Com del 60 days 4.74 4.84 6.44 1 Month LIBOR Rate 0.25 0.24 4.47 3 Month LIBOR Rate 0.28 0.29 4.64 6 Month LIBOR Rate 0.60 0.68 4.26 Call Money 2.00 3.25 1 Year LIBOR Rate 1.22 1.25 4.17
Income http://files.shareholder.com/downloads/ONE/748389895x0x324142/7ea411e8-fad0-40e2-9ca6-71607fb70e/3Q09_Earnings_Press_Release_FINAL.pdf
Leading Indicator
Discussion How did the Fed respond to the subprime mortgage crisis? Was the Fed’s response effective? What are some signs that the economy is recovering?