Fed to lend $60 billion to ease credit crunch

[Canuck_Buck]

January 4 2008: 1:11 PM EST[/align][/align]
WASHINGTON (AP) -- The Federal Reserve announced Friday that it is increasing the amount of money available to banks through the new auction process it created to ease the nation's severe credit squeeze. The Fed again pledged to continue the auctions "for as long as necessary."

http://money.cnn.com/2008/01/04/news/economy/fed_auctions.ap/index.htm?cnn=yes

Bush to meet with finance working group

http://money.cnn.com/2008/01/04/news/economy/bush_meeting.ap/index.htm

positive signs ?
[/align]

[Fieldmouse]

This is right behind the 500 Billion the EU Central Bank did last month.

The real pain was listening to Jesse Jackson this morning complaining about the subprime lending crisss. I have to ask myself what crisis? Less then 2% of the loans out there were subprime and not all are in default. Hardly a crisis in the making. There is a lot more to this story then we know.

The good news is that it's money loaned to the banks not a bail out.

[BigTiny]

Is this the same credit crisis created by people who took out variable-interest loans, trusting the bank not to increase their interest rate?

[Canuck_Buck]

so what is all the fuss about then?

The Canadian Imperial Bank of Commerce is making additional write downs of 2 billion bucks due to investments in US subPrime loans fiasco....

[Fieldmouse]

This is about much more then subprime loans. There aren't enough out there to make such an impact. I believe we will find some funny book keeping or hanky panky when all is said and done. The subprime crap was the escape goat.

[Canuck_Buck]

i wonder how many international banks are involved.

[Fieldmouse]

There are a lot of them caught up in this mess. Mortgage back securities were promoted as a sure thing. Invest and get 5% without worry.

[Sliverflicker]

I can use some help with my credit right now! How do I get my hands on some of this money?

[Aught Six]

Hey, you want to start a bank with me? Call it the 'Gimme GimmeSavings& Loan Company'.

[Sliverflicker]

Thats what Im talking about! My other question is, who are the Feds borrowing it from, to loan it out?