Posted: 8/10/2007 9:02:24 AM EDT
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biz.yahoo.com/ap/070810/fed_liquidity.html?.v=16 Can someone explain this to me. This "reserve" of money isn't just printing more money is it? Matt |
I wouldn't get too caught up in the technicalities of it. Just answer this question for yourself: Even if the Federal Reserve did fund it from their 'reserves', that means they are now depleted by X billions. They obviously want to replenish those reserves again at some point. Now guess how they'll do that. |
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I think it's stupid. They're pumping all the liquidity into these markets that failed because of what? Risky investments. They're essentially 'bailing out' these markets (like the subprime lending) - it's like giving them a pat on the back for making a terrible decision "Oh, it's okay - here, we'll give you 38billion since you lost it all giving out risky variable interest rate mortgages to people with NO CREDIT  "I say let the market take care of itself - these companies took and risk and they got bit in the ass by it. Let those hedge fund managers weep 
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Anybody that thinks that the fed isn't a hell of a lot more worried about the economy then they let on are fooling themselves. Same for the big securities companies. If "the people" actually wake up and look at the house of cards that the US is right now, there will be a lot of politicians out of power on both sides next election. So, they blow smoke with "fake money" and and play "prop the market". |