Fed Plans Liquidity Injection

[formercia]

Source: The Street.com

By Liz Rappaport
Markets Columnist
11/26/2007 10:21 AM EST

The New York Federal Reserve is taking action through open market operations to shore up liquidity in the financial system as banks and other financial institutions feel the year-end pinch of capital reserve requirements.

The Fed announced it will respond to "heightened pressures in money markets for funding through year-end," with a series of repurchase agreements that are more long-term than usual. The first, announced Monday, is an $8 billion, 52-day operation. Details and timing of additional operations through the rest of the year are not yet available. Typically the Fed puts liquidity into the system in 14-day increments.

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Read more: http://www.thestreet.com/s/fed-plans-liquidity-injection/markets/market-angle/10391568.html

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The other $480 Billion was just fore-play.

[n2doc]

1. Printin' printin, printin, keep those presses printin'....

Keep those presses printin, Rawdeal! (sung to the tune of "rawhide")


Inflation? We ain't seen nothin' yet!

[Didereaux]

15. wouldn't most today just be aghast if they saw ol' Rowdy Yates! lol

[Lasher]

2. In other words, they're printing more money.

Are you fond of that retirement IRA that you and your spouse sacrificed your whole lives to build up so that you wouldn't have to eat cat food when you got old? Didn't think they could steal it from you, did you? Well this is one way they're doing it.

[closeupready]

4. Yep.

n/t

[tularetom]

3. When money is cheaper than toilet paper

we can all wipe our asses with $20 bills.

[formercia]

17. The new ones are too stiff

and there's no telling where the old ones have been.....

[formercia]

21. Legal Money Laundering

Like a diaper service.

Reusable asswipe.

[endarkenment]

5. On a sidenote: Fed outsources money printing operations. nt.

[KansDem]

9. Yeah, and lead-based green ink will be used.

...and the dollar will become even more toxic!

[Zorra]

6. Liquidity injection? The fed reserve is putting that blue dress on again? n/t

[DadOf2LittleAngels]

7. Call it what it is

Making the dollar worth even less...

Yup lets keep marveling at the market in the 1300's when in terms of USD thats worth less than 5 years ago when it was far lower...

[Baby Snooks]

8. Water seeks its own level...

Just as water seeks its own level, so do the markets. When you stop whirling the glass around to make it appear there is more water there than there really is. The Fed keeps making money available to the banks to cover debt the banks themselves can't cover. The level of water, however, in the glass we know as the economy remains the same. The economy changes. As does the level of the water in the glass. Our economy has always been half-full in times of recession. It is now half-empty.

Worse is the obvious fact that the growing debt may start draining the glass ever so much more each time the Fed tries to fill it by making money available to those who had drained it to begin with. The banks, in a word, are insolvent. That is a harsh reality. But a reality.

We are headed for very bad times. And the Fed cannot control the inevitable. They can create money for the banks. But not for the economy itself. The rich may get richer. The rest of us may be headed for the soup lines again. Coming soon to a neighborhood near you.

[damntexdem]

10. So, who do they plan to liquidate?

[formercia]

11. Old Man Greenback

There was a time when the Dollar was accepted anywhere in the World with a smile.

Now he lays in the gutter, it's only time before the Fed puts him out of his misery.

[olddad56]

13. paving the way for the Amero...

the secretly proposed Canadian-American-Mexican currency. Google Amero sometime. It will be backed by silver, invest in silver now.

[notanotherday]

19. not just silver, but gold and other comodities like the Euro model.

but I can only see that as a last resort, as the dollar hits rock bottom. The social and economic upheaval will be like the harsh economic pill of the Russians had to take.

I do not believe the public here will go for it.

[donkeyotay]

20. And 9 people wound up with something like 95% of the wealth

It's not so different here. It's not like the wealth has ceased to exist; it's merely changed hands.

[roamer65]

12. They don't even have to print it anymore.

They just login to the Federal Reserve computers and create numbers.

[bemildred]

14. Can we have a few bars of Neil Young singing "The needle and the damage done"?

Sure makes me think of a junkie somehow.

[AndyTiedye]

16. You Know Why They Call Him "Helicopter Ben", Don't You?

[MadinMo]

18. Liquidity Injection

is that kinda like reverse liposuction?

[Yavin4]

22. In Jay-Z's New Video, When He Flashes Cash, He Flashes Euros

The elites are already holding Euros over the dollar.

[ryanmuegge]

23. Even the ones with single-digit IQs, as that example proves.

The secret's out.