US Fed takes out $540bn to save the market!

US Fed takes out $540bn to save the market!
Oct 21, 2008 22:57
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	US Fed launcheda new program yesterday, called the Money Market Investor Funding Facility, to save the US financial system. It is said that the Fed will take out 540 billion to buy short-term debt from money market mutual funds from money market investors. According to the Fed, the US central bank will lend money to five special purpose vehicles, to be managed by JPMorgan Chase, tasked with purchasing assets from money market funds. The Fed also disclosed that the oversize of this program was $600bn – with the Fed funding 90 per cent and the funds selling assets, taking the first 10 per cent of losses. Seems that US economy won't recover in a short period. Otherwise, US needn't use 540 billion to help those money market investors. This is the second bail-out after 700 billion bailout. I want to know if they will launch the third, fourth .... program to revive US economy from the financial crisis.

Oct 21, 2008 22:57

YVONNE
Points:
Join Date: Nov 29, 2004
Status: offline

US Fed launcheda new program yesterday, called the Money Market Investor Funding Facility, to save the US financial system. It is said that the Fed will take out 540 billion to buy short-term debt from money market mutual funds from money market investors. According to the Fed, the US central bank will lend money to five special purpose vehicles, to be managed by JPMorgan Chase, tasked with purchasing assets from money market funds. The Fed also disclosed that the oversize of this program was $600bn – with the Fed funding 90 per cent and the funds selling assets, taking the first 10 per cent of losses.

Seems that US economy won't recover in a short period. Otherwise, US needn't use 540 billion to help those money market investors. This is the second bail-out after 700 billion bailout. I want to know if they will launch the third, fourth .... program to revive US economy from the financial crisis.

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