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Money | 10/07/2008 8:50 am

Fed to Give Banks More Cash

By The Staff at wowOwow.com
© Shutterstock

The Federal Reserve is working to fund a wide range of U.S. businesses facing major cash shortages, according to the Associated Press.

It said it would funnel up to $900 billion into the U.S. banking system. Other countries made similar moves over the weekend so banks would lend to each other and to customers and keep credit flowing. Stock markets in Asia and Europe also have been taking a beating.

Fed Chairman Ben Bernanke may signal his next move when he speaks Tuesday afternoon on the economic outlook and developments in financial markets. President Bush also is set to talk Tuesday about the government’s $700 billion bailout.

On Monday, the Dow Jones industrial average in the U.S. closed at a four-year low after dipping below 10,000 points for the first time since October, 2004.

A meeting is scheduled in Washington later this week between officials of the International Monetary Fund and World Bank to coordinate global action. The Bush administration’s $700-billion bailout package offers help to foreign banks, but it hasn’t done much to reassure investors, particularly in Europe.

"The big gorilla is really liquidity," Edward Liebert, treasurer of Rohm & Haas and chairman of the National Association of Corporate Treasurers, 100 of whose members discussed the crisis last week, told the Post.

14 Reader Comments (so far…) Sign In or Register to comment

Belinda Joy
Okay this is getting out of hand…….Something does not smell right about all of this….
By Belinda Joy on 10/07/2008 8:37 am
Ms. Dee
Yes, Belinda. Methinks I smell a rat in Dubai.
By Ms. Dee on 10/08/2008 4:46 pm
Jennifer Dooley
Boy and howdy were we ever set up by Paulson and his cronies! What is the total now, 17.5 billion and it has only been 2 working days …and what did I say before the Bailout, they need to shore up the Banks,that’s who gives loans and credit not Wall street. A 700billion dollar Wall Street Bailoutthat was never going to solve the real problems. And with 900 billion dollar Bank shore 2 days latter they think you won’t realize that it was not the Bailout that loosened up funds. . The Bailout was never going to solve anything but save the Wall street Pirates and Profiteers. How does it feel to have been so snowed by the Senate , Congress and all the financial advisers that were so pro Bailout? Oh but we have 2 m illion dollars for wooden arrows, doesn’t that make you feel better! I hope their are all ashamed of themselves. But that would mean they care about the people and theyonly care about their personal bank accounts, and enough is never enough for any of you, thatis what Greed does it makes dishonest PIGS . How do you look yourselves in the mirror? How do you sleep? Some point in life you are going to have to pay the piper in spades, Karma can be a bitch! And people how many times are we going to be lied to and bow to fear tactics. It is time for Common Sense… and a look at Thomas Paine’s Common Sense “Paine’s political pamphlet brought the rising revolutionary sentiment into sharp focus by placing blame for the suffering of the colonies directly on the reigning British monarch, George III.” http://www.earlyamerica.com/earlyamerica/milestones/commonsense/text.htm… By Thomas Paine
By Jennifer Dooley on 10/07/2008 8:55 am
Jennifer Dooley
Opps that total to date is17.5 Trillion Borrowed Dollars! here’s a precpective of How much just a Billion is… The next time you hear a politician use the word ‘billion’ in a casual manner, think about whether you want the ‘politicians’ spending YOUR tax money. A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of its releases. A. A billion seconds ago it was 1959. B. A billion minutes ago Jesus was alive. C. A billion hours ago our ancestors were living in the Stone Age. D. A billion days ago no-one walked on the earth on two feet. E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.
By Jennifer Dooley on 10/07/2008 9:07 am
Diana T
One thing that Warren Buffett pointed out the other night on Charlie Rose is that this is not going away any time soon. It’s only been a few days since Bush signed the bill, and in our typical American way, we are expecting instant results. Not going to happen that way. They are trying to turn a huge battleship on a dime, and we need to understand that. This in addition to the world markets trying to stablize also.
By Diana T on 10/07/2008 9:40 am
Lucinda Herbert
Diana, You are right, we have to give it time. No instant gratification here. We have to be patient and not lose hope.
By Lucinda Herbert on 10/07/2008 11:39 pm
Ms. Dee
Patient and creative.
By Ms. Dee on 10/08/2008 4:44 pm
Dab-a- do
Well, this a direct quote from a bank in our area “We have plenty of money to lend for qualified borrowers, but the big majority of folks are just not wanting to borrow money right now with the uncertainty about where the economy is headed.” Seems like a self fulfilling prophecy to me. Recession here we come.
By Dab-a- do on 10/07/2008 2:48 pm
Lori Smaltz
AIG Execs take $500k Spa vacation less than a week after $85 million bail out, including $150 K spent just on food!! Read here: http://www.washingtonpost.com/wp-dyn/content/article/2008/10/07/AR200810 This is OUTRAGEOUS The feds are feeding a growing problem. No more money should be involved in a “bailout”
By Lori Smaltz on 10/07/2008 11:00 pm
Sherrie Crews
I keep hearing on the news that this crisis is hitting Wall Street because small businesses can’t borrow money to keep running and people can’t get loans for cars and houses, but I’ve yet to see any signs of that sort of problem here in a small mid-Atlantic town and neither has my mom in the Midwestern small town where she lives. I also keep hearing about how many tens or maybe even hundreds of thousands of jobs this has cost. Where were the jobs that were lost? I haven’t seen any of that around here or heard of it anywhere either. When we were losing hundreds of thousands of manufacturing jobs nobody cared, but now that they’re financial jobs in the cities it’s a crisis. Right?
By Sherrie Crews on 10/08/2008 1:08 pm
Sherrie Crews
That first line should read “that this crisis is hitting Main Street” rather than Wall Street. I still think this is whole bail-out was a huge mistake. They should have just paid off the mortgages in the first place. Now, even if they do decide to do something of that nature it’s just going to cost that many more billions and may it may be too late for that to even work.
By Sherrie Crews on 10/08/2008 1:42 pm
Misty Gibbs
Replying to…AIG Execs take $500k Spa vacation less than a week after $85 million bail out, including $150 K spent just on food!! —- there should be strict rules and agreements when money is given! unbelievable! Wouldn’t it have been great if taxpayers crashed the party at St. Regis..grab some champagne and say sorry this is mine! thank you very much! Misty with My Inspiration Lounge http://www.myinspirationlounge.com
By Misty Gibbs on 10/08/2008 3:06 pm
Ms. Dee
I thought it was 85 Billion.
By Ms. Dee on 10/08/2008 4:51 pm
Lori Smaltz
It is $85 billion, I mistakenly typed it as million.
By Lori Smaltz on 10/09/2008 12:26 am