The US economy continues to dig itself deeper. Today the Fed is making another $200 billion (with a B) in treasury securities available to Wall Street financial institutions.
Fed Easing Liquidity in Funding Markets
This is yet another move that shows the US economy is in deep trouble. We are in for a ride people.
Lowering interest rates and increasing liquidity are two of the tools the Fed can use to help a struggling economy. Hopefully these tactics will help, but it could be that things are past the point of no return and these tactics are simply delaying the inevitable.
Some select quotes from the article:
The Fed said it will make up to $200 billion in Treasury securities available to big Wall Street investment houses and banks. The new action is designed to ensure that there is an ample supply of Treasury securities. With strains in financial markets, demand has grown for Treasury securities, considered the safest investment in the world because they are backed by the U.S. government.
The move comes as banks and other financial institutions face cash crunches.
In addition, the Fed also on Tuesday said it has authorized increases in existing programs called "swap lines" with the European Central Bank and the Swiss National Bank
"These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB respectively," the Fed said, extending the term of these swap lines through Sept. 30.
Last week, the Fed announced that it would increase the amount of loans it plans to make available to banks this month to $100 billion. At the same time, it said it would make another $100 billion available to a broad range of financial players through a series of separate transactions.
And then there's
Oil...