Monday, 6 October 2008

Fed to pump in $900 billion

From Bloomberg:

Oct. 6 - The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

"The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions," the central bank said in a statement released in Washington today.

Sometimes it is hard to put such huge numbers into perspective. Well, $900 billion is equivalent to 6.5 percent of US GDP; a third of UK GDP, and it is more than the combined GDP of Sweden and Switzerland.

This liquidity operation is unprecedented. There has never been a larger one in human history.

Pray that it succeeds.


Anonymous said...

Watch today's TAF results.


Alice Cook said...

I'm watching....

fajensen said...

Pray? Gawd - I hope the FED FAILS (again). They deserve to fail. Hard.

AC said...

Where the hell will all this money supply lead ???

When the credit deflation has abated there will be a wall of inflation, 10% plus or more in a few years ???

Anonymous said...

It's not going to succeed - pray or not. What now? Communism?