Fed Plan to Lend Up to $200 Billion

More lending? Is that wise?

Keep lending more money! That's the ticket!

yeah.. lol

Were saved!

Hope so

Yeah they lent $200 billion without checking whether the people who they were lending to could actually pay it back.

Which is ironic really cos that kinda shit is what cause this whole sub prime shit in the first place. The market is fucked.

Credit card debt is highest this year ...

If they back it up with tax cuts, it is a win-win solution ....

LOL Fed keep on lending up

The market is so fucked that when it does go, its gonna crash like an irritating australian cousin hitting your pad.

It'll take you a year or two to get him to fuck off back to Oz land

Until someone comes up with a better idea they gotta try whatever they think might work.....whatever the odds.

Keep in mind that we're not talking about trying to avoid a run of the mill recession but something far worse.

The last genuine worldwide depression lasted more than 10 years and it took a world war to end it.

Trust me, we don't want to go there again

Unless they take these measures....

Almost 50% of the wallstreet major brokers would go belly up because of the credit crises and lack of liquidity.

Marril Lynch, Jp morgan, etc...

If that happens.. that would make 1929 crash - and the 30s seem like a field trip!


So they are doing everything they can to put liquidity back into the markets !


Bernanke and his crew have impressed me ! they did jump aboard this problem a little late though!

Should have started with the agressive rate cuts early in Dec.

http://www.bloomberg.com/apps/news?p...SZI&refer=home

U.S. stocks rallied the most in five years after the Federal Reserve said it will pump $200 billion into the financial system to shore up banks battered by mortgage-related losses.

Fed's Plan
The Fed said it plans to lend Treasuries in exchange for mortgage-backed securities and other debt that has plunged in value as homeowners defaulted on their payments.
.......
By lending Treasuries in exchange for mortgage-backed securities, the Fed will allow banks to switch debt that is less liquid for bonds that are easily tradable.

Fed officials told reporters on condition of anonymity that the program may be increased as needed. The move may also allow the central bank to cut interest rates less drastically than previously expected, leading to lower inflation.

Rate Bets

Traders reduced bets on a 0.75 percentage point cut in the Fed's benchmark rate by March 18, according to Fed funds futures. They priced in 64 percent odds of a three-quarter point cut, down from 86 percent odds yesterday. The rest of the bets are for a half-point cut in the rate, which is currently 3 percent.

Previous easing by the Fed failed to boost stocks. Since the Fed first addressed credit losses by cutting its discount rate by half a percentage point on Aug. 17, the S&P 500 has fallen 8.7 percent.

etc, etc... Sounds promising for me at this moment, see what happens tomorrow