That seems to be their only option. I mean, what could they do if banks started to default? They wouldn't force banks to deplete reserves to repay the fed.
ha, avoid recession, I dont think he understands that the US is ALREADY in a RECESSION...... DeKaser Says Fed's Moves Will Help Avoid Recession: Video March 11 (Bloomberg) -- Richard DeKaser, chief economist at National City Corp., talks with Bloomberg's Betty Liu about the Federal Reserve's plan to lend up to $200 billion of Treasury securities in exchange for debt including private mortgage-backed securities and the possible impact on the economy and financial markets. The Fed set up a new tool, the Term Securities Lending Facility, to lend Treasuries to primary dealers for 28-day periods, through weekly auctions.
Still..there hasn;t been a single negative GDP quarter since back in 2001. The US consumer and global spending is still very strong. The consumer hasn't folded as many leftists and pro-obama supports were anticipating. The communists want a class warfare. They want a revolution, but it won't happen.
Give it at least 6-9 months to see any effect of Fed rate cut or capital infusion. When you are in pain and takes a medicine do you feel an instant relief? Fed is trying to stimulate the economy, all they can do is give more money. They do not regulate the industry it is up to politicians to do so. Fed understand the risk of inflation but if economy will recover so will the green buck. Supporting dollar at this level will push our economy into depression in no time. So what are the choices left for fed?
Put a gun to their head and do us all a favor? The Fed got us into this mess.. and now we're looking to them to do "more of the same" to get us out of it? Duh!
Rising crude isnt really as big of a deal as the media is making it out to be. Gas prices in the US have remained very stable at 2.7-3.3 /gallon inspite of rising crude for the past year. No one complaining except the pro-obama supports.
The least they could do is not risk adding inflationary inputs when those inputs especially when those inputs place default risk on taxpayers' backs and don't even remotely accomplish their purported mission.