Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (62041)	8/20/2007 6:02:08 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 90947

biz.yahoo.com And they've STILL got thousands of subprime loans out there. Now: The Fed opens its Fed Funds window and makes $43B available. Most is still sitting there; banks don't want to loan except to the very best customers and can use depositor's money to meet that need; they don't need to borrow from the Fed to increase reserves to allow them to make more loans. The Fed the lowers the rarely-used-lately discount rate. This is the rate at which banks lend to each other. Why the discount rate instead of the widely watched Fed funds rate? Were they hoping no one would notice?hat money will eventually be taken. It is likely to be inflationary. Lowering the discount rate will result in fall of deposit rates offered by banks. Foreign money will go elsewhere, looking for higher yields. The net effect is inflationary. Interest rates on adjustable rate loans rise. More people can't make the mortgage payments and more go to default and foreclosure, making the problem worse. Meanwhile the European Central Bank injects $200B in its monetary system. Why? Trade war? It effectively devalues the euro- -within WTO rules. thestar.com