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.
5 comments:
Watch today's TAF results.
Nick
I'm watching....
Pray? Gawd - I hope the FED FAILS (again). They deserve to fail. Hard.
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 ???
It's not going to succeed - pray or not. What now? Communism?
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