As I said then, see link above, this was creating money out of thin air to support the US Stock market, and if the market did not rally which it did not, they would just create more new money out of thin air. So today they up it to 200 billion from 100 billion after only two business days
. They are must be soiling their underwear to react like this in two days. When will they wake up ? You cant just create money out of thin air to paper over the financial mess the banksters have created.
Steps to take when the FED gets real and serious
1. Reinstate publication of M3
2. Raise dollar interest rates
3. Start to talk up the dollar
4. Let some of the big banks fail.
5. Outlaw the securitization and bundling of mortgages and loans
until then the market will keep going down with brief rallies to celebrate the printing of new loads of money.
That would be a start not this childish we will just print mo money and lend. Lend to who ? Who wants to be in more debt?
March 11, 2008, 8:38 am<H2 class=post-title>Fed Statement on Expansion of Securities Lending</H2>The following is the text of the Federal Reserve's statement released Tuesday, March 11:
Since the coordinated actions taken in December 2007, the G-10 central banks have continued to work together closely and to consult regularly on liquidity pressures in funding markets. Pressures in some of these markets have recently increased again. We all continue to work together and will take appropriate steps to address those liquidity pressures.
To that end, today the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing specific measures.
Here is the statement
Federal Reserve Actions
The Federal Reserve announced today an expansion of its securities lending program. Under this new Term Securities Lending Facility (TSLF), the Federal Reserve will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days (rather than overnight, as in the existing program) by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS. The TSLF is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally. As is the case with the current securities lending program, securities will be made available through an auction process. Auctions will be held on a weekly basis, beginning on March 27, 2008. The Federal Reserve will consult with primary dealers on technical design features of the TSLF.
In addition, the Federal Open Market Committee has authorized increases in its existing temporary reciprocal currency arrangements (swap lines) with the European Central Bank (ECB) and the Swiss National Bank (SNB). These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB, respectively, representing increases of $10 billion and $2 billion. The FOMC extended the term of these swap lines through September 30, 2008.
The actions announced today supplement the measures announced by the Federal Reserve on Friday to boost the size of the Term Auction Facility to $100 billion and to undertake a series of term repurchase transactions that will cumulate to $100 billion.
Edited by zedor, 11 March 2008 - 08:20 AM.
