Tuesday, June 3, 2008

Chronicles Of Depression 2.0: #116

Fed auctions $75 billion to banks to ease credit stresses
WASHINGTON (AP) -- Battling to relieve stressed credit markets, the Federal Reserve said Tuesday it has provided a total of $435 billion in short-term loans to squeezed banks since December to help them overcome credit problems.

The central bank announced the results of its most recent auction -- $75 billion in short-term loans -- the 11th such auction since the program started in December.

It's part of an ongoing effort by the Fed to help ease the credit crunch, which erupted last August, intensified in December and January and took another turn for the worst in March.

The housing, credit and financial crises have weakened the economy and threaten to push it into recession.

Emphasis added by me.

That's near half a trillion dollars.

And it's nowhere near the end yet.

No comments: