Feds print billions more out of thin air

[G_j]

World central banks unite to ease credit strain


By Glenn Somerville and Emily Kaiser

WASHINGTON (Reuters) - The U.S. Federal Reserve and four other central banks on Tuesday teamed up to get hundreds of billions of dollars in fresh funds to cash-starved credit markets, allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.

Stocks surged, bonds fell and the long-suffering U.S. dollar soared in reaction to the moves, a sign financial markets saw the plan as a step in the right direction to ease a crisis that has threatened world economic growth. The Dow Jones industrials closed nearly 3.6 percent higher.

In the latest effort to ease a credit contraction that has disrupted global finance, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity. It was the second time in three months that central banks from around the globe had launched coordinated efforts.

Wall Street economists were quick to call the new lending facility a step in the right direction, but what's most needed is time for the de-leveraging of billions of dollars in loans globally.

"What we've seen is really a seizing of the money markets and it will help to alleviate this by injecting much needed cash," said Kathleen Stephansen, director of global economics at Credit Suisse in New York. "It doesn't take away the credit crunch because deleveraging will still have to take place. But this will make it a more orderly process."

Policy-makers are particularly concerned that tightening credit conditions, sparked by the U.S. subprime housing meltdown, will curb the flow of money to the people and businesses that power the global economy.
..more,,

Article Here:
http://www.reuters.com/article/topNews/idUSN1155480820080311

[NightWatcher]

1. how are the people on wall street NOT freaking out?

I am so scared that we are on the edge of a severe depression.

stock up on your supplies now. spend your money while it is worth something (however little)

[pbca]

5. I don't know how bad it will get

This will help cusion the fall though. All of the world's major banks are pitchin in to help prop the US up in the short term. I'm pretty sure that Americans will have to get used to a permanently lower standard of living and ex-super power status.

One thing I know is that fuel prices are never, coming down - they may dip up and down a bit but I'd say year over year they will continue to climb for a long time.

[NightWatcher]

6. the dollar is worthless. it wont be able to buy gas before long, nor food or anything else

look at the price of gas against the euro, it hasnt gone up very much at all. It's the dollar that is failing us at record speed.

[Dems Will Win]

19. The Fed can print up as many dollars as it wants as it suspended M-3 report in 06

The M-3 Money Supply number was no longer reported by the BFEE since March 2006. You can trace the collapse of the dollar to just about that point I beleive.

Welcome to the Weimar Republic!

[Vanje]

2. Woo Hoo. We're SAVED!

That was a close one.
We almost might have had a recession!!!

[The Backlash Cometh]

20. It's Hogwartz money from the wizardry world!

Harry saved us again!

[question everything]

3. Wondered the same thing

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x35875

[jimshoes]

4. It's like adding more water to

already weak tea. It only makes it weaker still, even though there is more of it.

[trof]

7. Hey! It's OUR bygod printing presses, and OUR bygod paper

and we'll print just as much as we want to.
So there!
Freakin' commoniss.
;-)

[mtnester]

8. Jeezus...it will take $85.00 to buy a loaf of bread

good god....do these people, who are supposed to be experts in all things economy related, GET it?

I don't think they do.

[shraby]

9. Long live computers. It makes it much easier to

increase the dollars than it used to be. Just hit 0 a lot of times and bingo, problem solved.

[BB1]

10. You guys are sooo doomed...

In the US. Outside, you might have a chance.
But seems to me you're all in the Big Factory, and the bosses aren't gonna let you go before you've ruined the competition. Or before you die, whichever comes first.

We got the same problems in Europe, but at least here the People in Power have half a brain.

[NightWatcher]

11. you live in Holland, we're all coming to your place

I love Rotterdam.

[BB1]

14. Rotterdam, port of Europe!

it stinks. Utrecht is much nicer.

You'll have to get used to living under sea-level. Don't come over if you don't know how to swim, skate or do stuff in the rain (we're that close to England). Also, stay away if you feel you're offended quickly, by just about anything. We love to offend, it's what we're good at:)
Now piss off!

[Commie Pinko Dirtbag]

15. You allow sex in public parks. What's not to like? -nt

[BB1]

17. They're coming down from that:)

It seems our reli-right thought it might send the wrong message... No shit, sherlock! Those are the same guys that want to get rid of the lank marihuana laws, the prostitutes in the Red Light District, porn on public tv, and Citroen 2CV in the inner city. Thanks, dudes...

But YOU are welcome anytime! It would still seem like a freaking Walhalla to any American:)

[Ezlivin]

12. Any wonder why the government stopped publishing the M3 money supply data?

The Federal Reserve tracks and publishes the money supply measured three different ways-- M1, M2, and M3.

These three money supply measures track slightly different views of the money supply.

The most restrictive, M1, only measures the most liquid forms of money; it is limited to currency actually in the hands of the public. This includes travelers checks, demand deposits (checking accounts), and other deposits against which checks can be written.

M2 includes all of M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds.

But that is all small potatoes, M3 includes all of M2 (which includes M1) plus large-denomination ($100,000 or more) time deposits, balances in institutional money funds, repurchase liabilities issued by depository institutions, and Eurodollars held by U.S. residents at foreign branches of U.S. banks and at all banks in the United Kingdom and Canada.

In other words, M3 tracks what the big boys are doing with the money. This includes US dollars held in banks in Canada and the UK (called Eurodollars) not to be confused with the Euro which is the standard currency of Europe. (Source)

Our government is hiding critical information from us. Naturally it's for our own good.

[ensho]

13. and CNN this a.m. was talking about the wonderful rise in the stock market

like everything was right with the world now.

insanity. and one of the a.m. women hosts is pregnant. what a future for the hopefully healthy baby to come into.

[Jeffersons Ghost]

16. K&R...

What I've always found amusing is that the U.S. Federal Reserve is a profit-making corporation - not a wing of our government - and it enjoys the luxury of printing all our money.

[formercia]

22. The folks at the fed can wipe their ass with all the paper

they take as collateral. Phony money for phony collateral. Which is worth less?


I hope the Fed goes under. Good riddance.

[musette_sf]

18. and THIS is the news

that Emperor-Gate was ginned up to deliberately obscure......

[Orsino]

21. And our money is proportionally devalued. n/t

[nolabels]

23. Even though Reuters is mostly sold out to multinationals it is still foreign based.........

and not as influenced as other US based conglomerate media outlets. Getting to hear about the news about your country from outside your country seems to be the norm anymore :shrug: