The Fed itself has targeted the housing sector through monetary policy, buying residential mortgage-backed securities in order to push interest rates down and provide further relief to mortgage-holders.
FORBES: Housing Still On The Mend: Case-Shiller Shows Prices Up For Fifth-Straight Month
While some have argued that Germany would be better off leaving the monetary union, its financial sector remains in close contact to the broader European economy, making it difficult for Merkel and the rest to give up.
FORBES: German Banks Don't Have Enough Capital To Face A Severe Downturn, Moody's Says
His theory asserts that private sector decisions sometimes lead to unexpected downturns in the economic cycle and, therefore, the public sector, including monetary policy actions by the central bank and fiscal spending by the government are needed to stabilize output.
As such, each man imposed regulatory-spending-tax-monetary regimes that stifled private-sector incentives, sapped entrepreneurial vitality, and chilled investor risk-taking.
Officials at the G20 meeting this weekend agreed on the need to strengthen the effectiveness and coherence of bilateral and multilateral IMF surveillance, particularly on financial sector coverage, fiscal, monetary and exchange rate policies.
On the contrary, it is perfectly possible for monetary unions to survive financial crises and public sector defaults.
The biggest problem at the moment for the sector is inflation and a tight monetary policy that is restricting lending.
Earlier this year Cyprus agreed a 10bn euro bailout with the EU and the International Monetary Fund (IMF) after its banking sector faced near collapse.
BBC: Slovenia unveils reforms as it seeks to avoid EU bailout
Japan, the world's second biggest economy, has been sidelined because of its persistent failure to push through the fundamental reforms needed to overcome its problems reforms in the banking sector, and in fiscal and monetary policy.
The Bank of Japan has relaxed its monetary policy, providing more cash to the banking sector in a bid to boost the flagging economy.
The CPA is establishing an "independent" central bank to handle Iraq's monetary policy, as well as to regulate its financial sector.
Financial stock watchers had taken a bearish stance heading into the Fed's monetary policy announcement, sucking up puts on the Financial Sector SPDR (amex: XLF) going into Thursday's rate meeting.
The three key elements of this policy remained the adoption of a floating exchange rate system, the anchoring of monetary policy to the inflation target and the acceleration of banking sector reforms, he said.
In addition to these sector-specific measures, it has also eased monetary policy aggressively the People's Bank of China cut interest rates last week, its first such move since December 2008 and required banks to park less cash as reserves with the central bank.
The past four years of very easy U.S. monetary policy have been an underlying bullish factor for the raw commodity sector, including gold and silver.
FORBES: P.M. Kitco Metals Roundup: Gold Sells Off on Technical Pullback, Extends Losses on FOMC News
There is a general feeling that President Obama getting re-elected would be bullish for the raw commodity sector because of the likelihood of easy U.S. monetary policy being kept in place.
Each of the schemes announced over the past few days - whether for infrastructure, for housing and for "credit easing" for small businesses - in their different ways respond to the same reality: that super-loose monetary policy, for one reason or another, has not kickstarted private sector activity as it was supposed to.
The raw commodity sector in general rallied on the news as it hints of further monetary policy easing around the world.
FORBES: Comex Gold Ends Sharply Higher on ECB Rate Cut, More Safe-Haven Demand
Back in February, the European Commissioner for Economic and Monetary Affairs told the Financial Times that measures being proposed to tame the financial sector would work, ie, they would produce a tamer sector that would drive less growth.
But this also means that Petrobras's borrowing counts towards Brazil's public-sector debt, which the government, under its deal with the International Monetary Fund, must curb.
Moreover, while there is some economic slack, borrowing by firms remains weak and monetary policy is loose, there is scant risk that rising interest rates will crowd out the private sector.
应用推荐