Headlines...

NEW -> Contingent Buyer Assistance Program
41 billion dollars? Ugh.

inflation.jpeg
 
More happy news:

"Large U.S. banks and brokerages will suffer additional writedowns of more than $10 billion in the fourth quarter as deteriorating credit trends continue to undercut the value of subprime mortgages and related securities, a Deutsche Bank analyst said."

www.cnbc.com/id/21594328
 
Fed Pumps $41B Into US Financial System

Thursday November 1, 5:15 pm ET

By Jeannine Aversa, AP Economics Writer

WASHINGTON (AP) - The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch.

The action comes one day after Fed Chairman Ben Bernanke and all but one of his central bank colleagues voted to slice a key interest rate for the second time in six weeks to protect the economy from the ill effects of collapse in the housing market, aggravated by the credit troubles.

The cash injection also came as Wall Street took a nosedive Thursday. The Dow Jones industrials were down more than 260 points in afternoon trading.

The Fed on Wednesday ordered its key rate, called the federal funds rate, to be lowered by one-quarter percentage point to 4.50 percent. That followed up on a bolder, half-percentage point cut in September. Those two rate reductions might be sufficient to help the economy make its way safely through trouble spots, Fed policymakers indicated.
 
IC, sounds like B of A has finally "gotten it". I'm wondering if they aren't anticipating homeowners trying to pull any equity out of their homes during the upcoming months....then intentionally defaulting with the cash in their pockets. Hmmm.
 
Was on the exercise bike this morning, TV had a nice B oa A ad about come get a fixed rate loan here from someone you can trust if you need to refi out of an interest only or neg am loan, or if you just want to pull some equity out of your house.

So, the game continues...
 
NSR - The GDP of +3.9% is using a PCE deflator of 0.8%. What a joke.

That's partly my point. Those headlines don't belong together, at all. I'm beginning to wonder how much the Fed is drinking their own kool-aid on the economy, state of the dollar and inflation.
 
NSR - I doubt if the Fed believes the price inflation rate is 08%. I think they just count on the American people to not care and to not understand. I did not see him yesterday, but consider what Kudlow must have been saying on national tv yesterday, "GDP is 3.9%! GDP is 3.9%! The greatest story that has never been told." And then top it off with today's employment figures. People believe that nonsense. I hear relatively intelligent people tell me that corporate balance sheets are healthy.
 
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