Fed pumps $41B into US financial system
 

WASHINGTON - The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action comes one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate for the second time in six weeks to protect the economy from the ill effects of collapse in the housing market, aggravated by the credit troubles.

The cash injection also came as Wall Street took a nosedive Thursday. The Dow Jones industrials were down more than 260 points in afternoon trading.

The Fed on Wednesday ordered its key rate, called the federal funds rate, to be lowered by one-quarter percentage point to 4.50 percent. That followed up on a bolder, half-percentage point cut in September. Those two rate reductions might be sufficient to help the economy make its way safely through trouble spots, Fed policymakers indicated.

The funds rate affects many other interest rates charged to millions of individuals and businesses and is the Fed's most potent tool for influencing economic activity.

FULL STORY HERE

im in escrow on 20 of my rental properties for a nice hafty profit, but im almost ready to back out becuase the rental market is so good right now.

i have been able to increase rents by 20%. better than any stock market investment i could ever make

crisis in USA ?

Suppose that one injection of $41bill is the largest - tho they injected more than that over last month. Sure not good, but little choice right now.

This scenario is beginning get repetitive and very predictable. Next is another interest reduction, and probably within the next 10 weeks followed by another injection of paper money.




p1mpdogg:

You are totally right man, no way would you get that level of return on the market - that has only been 18% over five years (net of inflation).

yeah and where is that money going? into about 5% of the population, big corps and rich people. Bush is a stupid fuck if he thinks that is going to take care of the over all problem.

its a fact that less than 5% of the global population own over 95% of the wealth... hopefully you are part of the 5%.

us economy is in for a rough ride.. the feds dont have 41b so they have to put out bonds, long terms we are in for a serious inflation and possible an economic breakdown.