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To: blam

I think it means that the fed is trying to do everything it can to prop up the banking sector with out doing a rate cut. They still think as I do that inflation is a real worry. And they are trying to ease pressure to get liquidity up without adding to inflation with a rate cut.


4 posted on 08/25/2007 5:12:32 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Citi to the rescue!


8 posted on 08/25/2007 5:16:09 AM PDT by Oystir
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To: Hydroshock
I think it means that the fed is trying to do everything it can to prop up the banking sector with out doing a rate cut. They still think as I do that inflation is a real worry. And they are trying to ease pressure to get liquidity up without adding to inflation with a rate cut.

Tell me if I'm wrong, but when the Fed "loans" money. It is increasing the amount of money in circulation by printing more, and if this is done when there is no need to cover an increase in economic output, it too fuels inflation. A higher interest rate is a brake on this, but too much lending would still produce inflation.

12 posted on 08/25/2007 5:27:47 AM PDT by SampleMan (Islamic tolerance is practiced by killing you last.)
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To: Hydroshock

“And they are trying to ease pressure to get liquidity up without adding to inflation with a rate cut.”

I still think this is insolvency not liquidity that is the problem. Throwing all the money in the world and there’s a world of money out there, to solve the crunch is not going to solve the problem when the rules of lending have changed dramatically.

I wonder if TXU is a go or is the new lending world finally looking at outcomes?


14 posted on 08/25/2007 5:29:44 AM PDT by OpusatFR
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To: Hydroshock
I think it means that the fed is trying to do everything it can to prop up the banking sector with out doing a rate cut.

You're right, but this is more about protecting their egos than inflation.

15 posted on 08/25/2007 5:30:07 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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