Marine industry watches for fallout from market intervention

Posted on

Marine industry leaders are taking a wait-and-see attitude on how they may be affected by the latest federal buyouts to help shore up lending institutions and financial markets.

“It’s early yet, but I’m encouraged by the way the markets are reacting,” Jim Coburn, president of the National Marine Bankers Association, told Soundings Trade Only this morning. “[The markets] are reacting favorably.”

The U.S. Treasury Department and the Federal Reserve put forth a plan aimed at bolstering the nation’s $2 trillion of assets in money market funds. According to newspaper reports, the Treasury will tap into a Depression-era fund to provide guarantees for the money market mutual funds.

The central bank plans to purchase short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

“Any time there’s uncertainty in the financial markets, it causes concern at all levels,” Massachusetts boat dealer Larry Russo said this morning. “The question is how will it affect lending?” he added.

Russo says it’s too early to tell what effect the bailout will have on lending practices. He questions whether it will have any effect on the marine industry, which lost several financial institutions in the last year or so, including National City Bank and Wachovia.

“Our industry already has been picked clean,” he said. “I wouldn’t anticipate this is going to change the landscape [for the marine industry].”

For more coverage, click here.

— Melanie Winters
m.winters@tradeonlytoday.com

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Is the decision to move the Miami show to the Miami Marine Stadium a good one?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password