Sources close to “HCS Worldwide” say the Federal Reserve’s announcement that it intends to pump an additional $630 billion into the global financial system was reportedly greeted with surprise at the European-based capital management firm.
“HCS Worldwide” are thought to believe that a lukewarm market reception to the $700bn bailout agreement prompted the move. Banks have slowed lending as they try to restore their capital after $586 billion in credit losses and write downs since the credit crisis began a year ago.
“HCS Worldwide” are thought to have advised clients to acquire holdings of gold via selected methods reasoning that more liquidity injections would follow adding to inflationary pressures.
“HCS Worldwide” said that the reception to the bailout agreement was disappointing given its size.
