Federal Reserve pumps further liquidity into global money markets

[FrankRep]

Federal Reserve pumps further liquidity into global money markets

Market Watch
Sept. 29, 2008

The Federal Reserve on Monday announced that it was providing more liquidity into global money markets to ease recent strains. The Fed said it was boosting the size of its auctions of liquidity to commercial banks and the size of its swap agreements from a number of foreign central banks to $620 billion from $290 billion. In addition, the Fed announced a new forward auction to provide lending to banks over the year-end. "These steps are undertaken to mitigate pressures evident in the term funding markets in the United States and abroad," the Fed said in a statement. "By committing to provide a very large quantity of term funding, the Fed actions should reassure financial market participants that financing will be available against good collateral, lessening concerns about funding and rollover risk," the Fed added. Central banks stand ready to do more, the statement said.


SOURCE:
http://www.marketwatch.com/news/sto...3F93-3C39-4F6D-AFF2-9345CDF61917}&siteid=bnbh

 

[FrankRep]

Fed takes fresh steps to battle credit crisis
Fed, other central banks takes fresh steps to battle credit crisis

AP
September 29, 2008

The Federal Reserve and other countries' central banks have announced fresh steps to battle a worsening credit crisis that threatens to unhinge the U.S. economy

The Fed said Monday the action is intended to "expand significantly" the availability of cash available to squeezed banks and other financial institutions in an effort to provide relief to the worst credit crisis since the Great Depression.

The Fed cited "continued strains" in the demand for short-term funding.


SOURCE:
http://biz.yahoo.com/ap/080929/fed_credit_crisis.html?.v=2

 

[..PAUL4PRES..]

I just heard em say on Cnbc if it takes 2 trillion they will keep on doing it and worry about inflation later. This is gonna get nasty. Intresting time to be alive.

 

[FrankRep]

I just heard em say on Cnbc if it takes 2 trillion they will keep on doing it and worry about inflation later. This is gonna get nasty. Intresting time to be alive.

What a scary statement.

"I'll just keep popping pills until the pain goes away...."

 

[JaylieWoW]

What a scary statement.

"I'll just keep popping pills until the pain goes away...."

Please send me a few... I'd like to go back to sleep.

 

[..PAUL4PRES..]

Please send me a few... I'd like to go back to sleep.

I kind of want to go back to sleep also.

 

[reagle]

"The FOMC has authorized increases in all of the temporary swap facilities with other central banks. These larger facilities will now support the provision of U.S. dollar liquidity in amounts of up to $30 billion by the Bank of Canada, $80 billion by the Bank of England, $120 billion by the Bank of Japan, $15 billion by Danmarks Nationalbank, $240 billion by the ECB, $15 billion by the Norges Bank, $30 billion by the Reserve Bank of Australia, $30 billion by the Sveriges Riksbank, and $60 billion by the Swiss National Bank. As a result of these actions, the total size of outstanding swap lines is $620 billion."

http://www.federalreserve.gov/newsevents/press/monetary/20080929a.htm

Why are we giving money to those banks ?