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Question: the Fed's injected $5.25B into the "system" wednesday... How?
how is money "injected" into the financial system? what exactly are they injecting? Gold? dollar bills? rates?
i dropped out of economics lol. ---------- Federal Reserve Injects Another $5.25 Billion Making 137.25 Billion This Month The Federal Reserve has pumped 137.25 billion dollars into the financial system since August 9th to ease troubles in the high risk subprime mortgage market. Wednesday the Fed pumped in another 5.25 billion to help fend off a widening credit crisis. Source: news.xinhuanet.com |
they're injecting money.
it means that banks loaned $5.25 billion from them |
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It means that the end is near.
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To "pump money" into the economy the fed buys overnight CD's from it's participating banks, who thus have the respective extra money to lend out.
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Don't think about it too hard or you'll realize that the major trends of the economy are dependent largely on vapor.
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