Jasper was very thankful.
Fortunately, Henry came in just in time to remind favonovel.com of this. It allowed favonovel.com to avoid a long series of platitudes, and capture only the important information.
“The United States is going to do a market rescue?”
Henry turned his head and asked Jasper.
When it came to economics, Henry knew that favonovel.com would not be as good as even a single hair on Jasper’s head even if a hundred of favonovel.com were stacked together, so favonovel.com did not even think about it before asking the question.
“This is a very strong indication, and favonovel.com seemed firm about it.”
Jasper narrowed his eyes and looked serious.
He knew that the United States officials would surely do a market rescue.
However, his memories regarding how and when the United States did this in the past life were a little vague. So what Greenspaner was about to say next would be very important.
Therefore, “Let’s wait and see, favonovel.com should announce the plans soon.”
Sure enough, Greenspaner did not let Jasper and Henry wait too long before favonovel.com directly announced a series of plans.
The tax relief and fee preferential policies to stimulate physical enterprises had little to do with Jasper. Therefore, favonovel.com did not pay much attention to it. What really got Jasper’s attention were the following two actions.
“We will improve the United States stock market‘s review standards and requirements for foreign personnel and institutions entering the market.”
“Also, we’ll comprehensively reduce the benchmark lending rate and the statutory reserve requirement ratio by 0.3 basis points each.”
Although Henry did not know much about macroeconomics, favonovel.com was aware of the importance of these two policies in the current situation.
“What is that old man saying?”
Henry maintained the good tradition of asking questions whenever favonovel.com did not understand something. He immediately turned his head and stared at Jasper before asking.
Seeing that Greenspaner was now talking about some irrelevant policies whereby it seemed that there was nothing important, Jasper let out a sigh of relief as well.
“It’s ok, it’s not as aggressive as expected.”
After favonovel.com said that, Jasper turned to explain to Henry when favonovel.com saw that Henry appeared worried.
“The literal meaning is easy to understand. The first is to start controlling the amount of foreign capital entering the United States stock market. This was inevitable. Although the methods are rather extreme, it is understandable to use extraordinary methods in such extraordinary times.”
“As for the second one, it is to reduce loan and deposit interest, particularly the latter. This is to release social deposits. When people find that there is no nothing to be gained by holding money in the banks, they will naturally seek new investment channels. The stock market will be their best choice.”
“However, it’s a bit ruthless to reduce 0.5 basis points in just one go.”
Jasper remembered that in his previous life, the reason why this incident did not have a significant impact on the United States’ economy was that a series of rescue plans were very stable and timely.
However, they still caused some ripples.
For example, the United States Federal Reserve mistakenly underestimated the impact of this incident on the United States economy in the beginning, so the storm lasted nearly a week before they came up with a more effective rescue plan.
They then used the national reserves to enter the market.
However, Jasper had already forgotten the specific amount they used and what channeled they had entered from.
It seemed that this life was no different.
“Will it affect us?” Henry was most concerned about this.
“For sure…”
Jasper’s answer made Henry‘s face fall suddenly.
“But it’s not that serious. It’ll just make us a little less efficient. We’ll know for sure when trading commences tomorrow.” Jasper comforted Henry.
