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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: No Mo Mo who wrote (85813)8/17/2007 9:18:47 AM
From: Think4YourselfRead Replies (1) | Respond to of 306849
 
Fed funds rate effects loaning from one bank to another. Discount Window rate effects loans from the fed to banks, via the Discount Window.

The fed is temporarily removing some of the penalty normally associated with banks coming to the fed if they need cash. Discount rate is still 50 basis points higher then fed funds rate.



To: No Mo Mo who wrote (85813)8/17/2007 9:48:42 AM
From: Paul KernRespond to of 306849
 
It gives banks borrowing at the discount window a break to keep cash in the system and allow them to make their reserve requirements since they were unwilling to lend to each other at 5.25 per cent fed rate.