JUST KEEP THROWING MONEY AT THE PROBLEM, THATS THE WAY TO DO IT............ THIS WILL ONLY CAUSE MORE PROBLEMS....... Fed offers $100 billion more to banks By MARTIN CRUTSINGER, AP Economics Writer 56 minutes ago WASHINGTON - The Federal Reserve announced Friday it will auction another $100 billion in April to cash-strapped banks as it continues to combat the effects of a credit crisis. The central bank said it would make $50 billion available at each of two auctions, on April 7 and April 21. Through the end of March, the Fed has provided $260 billion in short-term loans to commercial banks through the innovative auction process. It also has employed Depression-era provisions to provide money to investment banks. All the moves have been designed to cope with a serious financial crisis that has roiled U.S. and global markets and caused the near-collapse of Bear Stearns Cos., the nation's fifth largest investment bank. The Fed has been holding auctions every two seeks since December to provide short-term loans to commercial banks. It started with auctions of $20 billion, then pushed the level to $30 billion, and in early March raised the auction amount to $50 billion as the credit shortage grew more severe. In announcing the move to $50 billion last month, the Fed said it would continue the auctions for at least the next six months, unless credit conditions show they are no longer needed. The auctions are just one of a series of unorthodox steps the Fed has taken to battle the current crisis. The biggest of those moves was an announcement that it was allowing investment banks to borrow directly from the Fed. Previously, only commercial banks, which face tighter regulations, had that privilege. The Fed also said it would make available $30 billion in financing to support the sale of troubled Bear Stearns to JP Morgan Chase & Co., hoping to prevent a bankruptcy that could have rocked Wall Street. The Fed's auctions have drawn criticism from some that the central bank, and ultimately U.S. taxpayers, could be financing a bailout for big Wall Street firms that had engaged in risky lending practices. Fed Chairman Ben Bernanke will fact questions about the Fed's recent moves when he testifies on Wednesday before the congressional Joint Economic Committee.
And what do the American tax payers who pay interest on all this money get. A 600 dollar check in the mail. Mortgage rates have fallen .40% since the fed slashed 3.00% off the fed funds rate. We get less for our free cash. What are CDs and money markets yielding 2.5% that just barely keeps up with inflation What is the spread between the yield on the 10yr and current 30 year mortgage rates 2.8% we are getting screwed while huge investment banks get free money, so they can keep giving themselves 60 million dollar pay checks. Things are shaping up for some real change in America.
The S2007S and Aaron Copland's of the world have about as much understanding of the credit markets and the banking system as a pig understands that he gets slaughtered and winds up in people's frying pans . . . For them, it's ALL about the FED trying to prop up the stock market. They have no clue about the banking system and the magnitude of its effects on the ECONOMY. Their logic that they frequently "litter" ET with as they continually bash the FED and its MANDATE is so convoluted and backwards that they have obviously have never taken a simple course in Macro-Economics. Far be it from these two imbeciles to understand that the credit markets here in the U.S. are a $25 TRILLION DOLLAR market! Duh.
S2007S copying + pasting again with the same comments all over again. "FED PRINTING MONEY".. My God, this is getting ridiculous.
They are propping up the markets, you want to guarantee that they will step in and PROP the damn markets up once the S&P nears 1270-1280..
I dont even think the federal reserve or even the banks themselves have a clue of how the system works, thats why we are in one of the biggest credit bubbles in history....
Listen to yourself. You sound just like a perma bear incarnation of stock_trad3r. And you fail to reply to any rebuttals and counter arguments. You just keep re-posting the same platitudes. Let me guess. You understand more about macro economics and the credit system than the Fed governors right?
*********FOR IMMEDIATE RELEASE ********* Along with the 100B to banks, Ben Bernanke is enlisting the help of all PDT's in propping up the US Equity markets...to the tune of another $30B He has just instituted a policy, in cahoots with, er, in conjunctions with, the SEC, to immediately eliminate the PDT rules, and, further, to make available to all known PDT's an immediate line of credit from the Fed, (minimum tranches of $1M), at rates that equal those of the primary banks... Greater sums available upon request, and, the Fed will backstop all losses up to $29B. http://dailyreckoning.com/Featured/bernanke-helicopter.jpg