The stock market soared today after the Federal Reserve announced they would join other major central banks in injecting more money globally. This was the biggest one-day point and percentage gain for this entire year. But don’t get too excited, this is a band-aid on a burn not a longterm fix.
While the Dow Jones industrial average closed above 12,000 and surged 500 points, due to knee jerk reactions, experts say this is not permanent. However, with the central banks of Europe, the U.S., Britain, Japan, Canada and Switzerland coming together to inject cash, it was needed to avoid another financial disaster (for the moment).
This move is intended to keep credit freely flowing around the world, and offers business owner’s and consumer’s more opportunity to borrow. According to experts, this was a necessary move to avoid a repeat of 2008. The announcement calmed fears of a global credit crisis.
But as we all know with the stock market…tomorrow can be a completely different story. Basically today the U.S. printed some more money…does that seem like a real resolution?