Fed Acts To Ease Strain On U.S. Economy

New York Times:

Impelled to take extraordinary measures for the second time in less than a week, the Federal Reserve moved on Tuesday to subdue the deepening crisis in credit markets by stepping up as lender of last resort.

In an action that sent stock prices soaring, the central bank offered to let the biggest investment banks on Wall Street borrow up to $200 billion in Treasury securities in exchange for hard-to-sell mortgage-backed securities as collateral. And the Fed made clear that it was prepared to do more as needed.

The move, which was coordinated with central banks in Europe and Canada, came on the heels of two similar actions on Friday, in which the Fed offered up to $200 billion in 28-day cash loans to banks and big financial institutions.

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Read the whole story: New York Times

Comments

[joebaggadonuts]

Well, that rally lasted for a day. Won't get to November this way. Gonna have to wag the dog harder this time.

[speakingtruth2power]

Every buy in by foreign interests is a selling out of America. These "European Banks" are just

fronts for Asian industrialists and Arab Oil Sheiks, buying in with what BushCo has given them.

What was once Communist China is now a totalitarian state, run by friends of Rupert Murdoch.

The big stock market gain yesterday was partly based on expectations of war with Iran, signaled

by Cheney relieving Admiral Fallon of his job at CentCom who had resisted the neocon's plans.

Anyone who wants to point out that Cheney can't fire whoever he wants to, doesn't know Dick!!!

[civilbehavior]

Spot on...........

Things are going to get much worse.

Few are prepared in America for the impending PNAC wet dream.

It's coming.

[speakingtruth2power]

All the neocons need is a false flag attack that can be blamed on Iran.

Our own war games predicted that we'll lose most of the Naval forces

in the Gulf to Iran's modern Chinese and Russian land2sea missiles.

BushCo ordered the game planners to re-float the ships before they

finalized their results. Unfortunately reality can't be so easily revised.

[thegreatgiginthesky]

Better known as the "Kick the can down the street" strategy

[mrcontinental]

How much is your dollar worth?

[WIpatriot]

"Indeed, some analysts warned that the central bank might make things worse in the long run by postponing the repricing of mortgage assets that financial institutions are holding, or by further weakening the value of the dollar and aggravating inflation."

That's what we've been telling you all along, Bennie, you are making it worse.

[dadw5boys]

IF THE FED REALLY WANT TO TAKE THE STRAIN OFF THE ECOMONY THEY CAN STOP CHARGING INTEREST ON THE NATIONAL DEBT!!!!!!!!!

[RTIII]

Do you mean PAYING interest on the national debt? If so, China and other holders of our debt are going to sell and the dollar would fall into the toilet. I think you'd better re-think your suggestion.