today, the fed took the unnerving step of step of pumping money into the market - three times. the first influx of cash was done in an $19b one hour earlier than it's regular time. then, the fed issued a statement - something not done since 9/11.
For immediate release
The Federal Reserve is providing liquidity to facilitate the orderly functioning of financial markets.
The Federal Reserve will provide reserves as necessary through open market operations to promote trading in the federal funds market at rates close to the Federal Open Market Committee's target rate of 5-1/4 percent. In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets. As always, the discount window is available as a source of funding.
it gets worse... click if you have a strong stomach (and bank account)...
why is the fed doing this? to allay fears of the foreign investors, the london exchange, FTSE, which closed 3.71 lower friday due to the u.s. market and banking instability? to counter Paribus, the french bank that suspended redemption of 3 u.s. funds that involved credit and mortgage investments.
the fed then pumped another $16b into the market before noon - and then, late afternoon, the fed dumped another $3b into the market to "stabilize" it.
unfortunately, the asian and european and middle eastern markets didn't see this as a "fix" - and it appears to further rattled investors and markets.
from aljazeera,
Several other central banks around the world pumped lesser amounts into their banking systems.
But stock markets continued to slump across the world, with volatile US markets moving sharply lower before rebounding late in the day.
"It's that unnerving effect of the unknown which is spooking investors at the moment," Henk Potts of Barclays Stockbrokers in London said.
now, bushco is trying to "fix" the economy? the economy that is dying from $4.5 trillion spent in iraq? dying from stripping the government of every penny in its coffers while spending like crazy? $38 billion just in one day pumped into the market?
how much will the fed have to put into the market daily to stabilize the world market that is reeling from the meltdown in american housing and real estate loans that have ballooned out of control while jobs move overseas!
earlier tonite, someone diaried that the democrats should "lose" in 2008 so they/we don't get stuck cleaning up the mess.
my question is this: will there be anything left to clean up after another four years of neocon disaster... or maybe that is the neocon dream - destroy THIS nation so that the multinationals have a new slave labor force available when china and the marianas and other exploited people finally catch wise to their exploitation.
don't know what to expect from the friday night blogging fools - but i just had to get this off my chest. bonddad could have done a much better job, i'm sure - but he isn't around and i had to rage.
our country is falling down around our ears - we need to stop screaming impeachment to our legislators and start screaming "it's the ECONOMY, stupid (or dumbass, whichever epithet you prefer!)
going to go have some chocolate and cry now... oh. no.
campbell'sis looking to sell godiva? what!
WHAAAAAAAAAAAAAAAAAAAAA..................... NOOOOOOOooooooooo!