| Gillard defends RBA independence
DEPUTY Prime Minister Julia Gillard has defended the independence of Australia's central bank following criticism of its head by Opposition Leader Brendan Nelson. Dr Nelson said it was "insensitive" of Reserve Bank of Australia (RBA) governor Glenn Stevens to defend the major banks for lifting home loan interest rates above the official cash rate increase. Ms Gillard said Mr Stevens was entitled to make his own statements. "It is easy for Dr Nelson to take a shot, but he doesn't seem to able to come up with any solutions,'' Ms Gillard said. "The Reserve Bank governor is independent, and as an independent person he makes his own statements.'' Ms Gillard said the Rudd Government had guaranteed the independence of the RBA, with better appointment mechanisms in the future so its independence is guaranteed.
Individual Debt Growth Of South Koreans Slows In 2007
(RTTNews) - Individual debts of South Koreans rose 10.4% in 2007 on a year-on-year basis, according to a preliminary report published by the Bank of Korea. In 2006, the growth rate in individual debts was 11.4%. According to the report, the introduction of stringent regulation by the government resulted in a fall in the loans taken by the individuals. The outstanding debts stood at 739.7 trillion won or US $ 742.9 billion in 2007. The Central Bank said the debt growth had declined as people found it difficult to get mortgages due to stringent regulations. The mortgage market was slowing down as the government wanted to put measures in place to curb the soaring house prices in 2006. This made it more difficult to get home backed loans from banks. However, individuals' investment in stocks and bonds increased almost two folds to 64.5 trillion won in 2007, compared to the previous year, as retail investors took advantage of the bull run and invested more in stocks.
Investment firms tapping Fed for billions
Big Wall Street investment companies are taking advantage of the Federal Reserve's unprecedented offer to secure emergency loans, the central bank reported Thursday. Those firms averaged $32.9 billion in daily borrowing over the past week from the new lending facility, compared with $13.4 billion the previous week. The program, which began last Monday, is part of the Fed's effort to aid the financial system. On Wednesday alone, lending reached $37 billion. .
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