Fed's $41 billion cash "infusion"

[eye2i2hear]

Quote:
Fed's $41 billion cash infusion

Friday, November 02, 2007
Inman News

The Federal Reserve sent $41 billion of short-term reserves surging into financial markets Thursday -- the biggest such move since the Sept. 11, 2001, terror attacks* -- as stocks plummeted over fears that losses in mortgage lending are worsening.  *[A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001]

Analysts at CIBC World Markets downgraded Citigroup's stock, saying the company must raise more than $30 billion in capital as write-downs on securities backed by home loans cut into the company's bottom line. Some analysts said investors are worried about similar problems at other banks.

The cash infusion was intended to provide liquidity to financial markets by giving banks access to more money to lend. But the Dow Jones industrial average fell 362 points Thursday, or 2.6 percent.
...
Many investors have been betting that the Fed would continue to lower the federal funds rate -- the rate banks charge each other for overnight loans -- to encourage borrowing and reduce the risk of recession. After the late '90s tech boom, the Fed slashed the federal funds rate from 6.5 percent to 1 percent between Jan. 3, 2001, and June 25, 2003, to stimulate the economy.

Now, although some economists say the housing downturn could lead to a recession, the Fed remains concerned about a weakening of the dollar and inflationary pressures, including energy prices. Oil prices have soared past $90 a barrel, and the dollar has been trading at historic lows to the euro.

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** perhaps this should be posted under/moved to the "Jokes & Funnies" category?? **  :rolleyes:

[Lummox3]

The system is going to fail any day now.

Booze, fags, gold and food - get hold of them asap.

[Marc Stevens]

Some days I just can't be fagged mate

[Plume]

all because of "Bonuses". no one is content where they are. it can't be rich. it's got to be filthy rich.
while the lesser haves strive to be at least rich, the rich strive for more wealth and the cost of peanut butter rises $2 more (sarcasm) because sales didn't fair well the previous year. what an ignorant circle.
WE DID IT YAY!      team spirit is killin us all.