[RobRoy]

Yikes! Lowering reserves?!?! This really IS gonna get ugly.

[Charliehorse]

The last time the bank reserve was reduced was in the early 1980's and it kicked off the long bull market in stocks. Might not be so bad. Right now the requirement is for 8% reserves. A reduction of reserves to 7% would increase the money supply by 12.5%. That would be a lot of money and the first use of it would be to go into the market.

[arete]

There is a strong call, both on Wall Street and in Washington, for the Fed to openly flood the markets and the economy with liquidity and credit.

Helicopter drop?

Richard W.