Fed drops $100B on top of $100B TAF

rougebear · Mar 8, 2008

This mornings report by Steve Liesman was 100 billion on CNBC. It looks like Helicopter Ben had to double down...

"The Federal Reserve on Friday announced emergency measures to add $200 billion into the banking system in a bid to ease persistent liquidity strains that are leading to a global credit freeze."
http://news.yahoo.com/s/nm/20080307/bs_nm/usa_fed_dc;_ylt=AneLUxm_5xdefs_ph5txMES573QA

Reason behind the emergency injection is rumored to be a large bank on the brink of implosion....talks out of Washington but nothing Mutual.

Mr Pain · Mar 8, 2008

http://business.timesonline.co.uk/tol/business/economics/article3508468.ece

The time take on it. This is very bad. :eek:

JamesVU2000 · Mar 8, 2008

nationalization.

Landis82 · Mar 8, 2008

What else would you want the FED to do at this point and time? Do you even understand the MAGNITUDE of what is going on in the commercial banking sector???

As it is, the commercial banks of United States have little "good" collateral to make loans on. The "good" collateral has already been pledged out.

Are you interested in seeing the U.S. economy head into a "Depression"?

As it is, the jobs numbers for the last couple of months are the worst since 2003.

Get real.

kashirin · Mar 8, 2008

Quote from Landis82:

What else would you want the FED to do at this point and time? Do you even understand the MAGNITUDE of what is going on in the commercial banking sector???

As it is, the commercial banks of United States have little "good" collateral to make loans on. The "good" collateral has already been pledged out.

Are you interested in seeing the U.S. economy head into a "Depression"?

As it is, the jobs numbers for the last couple of months are the worst since 2003.

Get real.

Landis, I guess you don't understand

The crisis was directly created by Fed cuts

Let's see US consumer will pay just for oil around 200 billions more than last year. That number exceeds stmulus package by 50 billions already
And if oil goes higher it will be more

Add other commodities and losses will be much higher
Do you understand the magnitude?
That's not financial system, That's the real world losses
So losses from rate cuts will be at least equal to the total writedowns but probably much higher

The Kin · Mar 8, 2008

Quote from rougebear:

This mornings report by Steve Liesman was 100 billion on CNBC. It looks like Helicopter Ben had to double down...

"The Federal Reserve on Friday announced emergency measures to add $200 billion into the banking system in a bid to ease persistent liquidity strains that are leading to a global credit freeze."
http://news.yahoo.com/s/nm/20080307/bs_nm/usa_fed_dc;_ylt=AneLUxm_5xdefs_ph5txMES573QA

Reason behind the emergency injection is rumored to be a large bank on the brink of implosion....talks out of Washington but nothing Mutual.

brokerboy · Mar 8, 2008

Quote from Landis82:

What else would you want the FED to do at this point and time? Do you even understand the MAGNITUDE of what is going on in the commercial banking sector???

As it is, the commercial banks of United States have little "good" collateral to make loans on. The "good" collateral has already been pledged out.

Are you interested in seeing the U.S. economy head into a "Depression"?

As it is, the jobs numbers for the last couple of months are the worst since 2003.

Get real.

Let the bad happen. Sometime we are going to have to pay the piper and the longer we put it off the worse it will be.

number22 · Mar 8, 2008

Quote from The Kin:

Where is Ben?

Trayo · Mar 8, 2008

Got cut up by the blades...

Landis82 · Mar 8, 2008

Quote from kashirin:

Landis, I guess you don't understand

The crisis was directly created by Fed cuts

So losses from rate cuts will be at least equal to the total write downs but probably much higher

Please feel free to substantiate the above claims with factual references, and in doing relate that to how it effects the Economy; from upstream to downstream.

You seem to imply that there is an important distinction made between the financial system, and that of what you call the REAL world. Where do you think economic growth comes from in the first place?

You naively fail to consider the "multiplier" effect on the economy by the commercial banking sector. It is NOT a 1:1 ratio as you so naively suggest!