Feds Put $38 Billion Into Credit Markets

It’s only $38 billion dollars, and perhaps it will help bail out the credit markets and keep the rest of us from having an issue which might cause lending to cease because lenders are increasingly afraid to take risks in today’s volatile environment. The Fed’s action, along with similar moves by the European Central Bank and others, tells banks that money is available if it’s needed to ensure that overnight bank lending and other routine transactions can continue.

Christopher Cagan, CoreLogic’s director of research and analytics, predicts about 1.1 million ARMs totaling $325 billion will sink into foreclosure as rising monthly payments squeeze borrowers. After accounting for the money recovered through property sales, he expects the losses from the fallout to total $112 billion, with the damage spread out over six years.

I don’t use my blog as a political outlet, but $38 billion is a “Band-Aid on a broken arm” amount of money to actually due much good. I just have to note how much money we waste in other areas of the government.  and/or .


One Response to “Feds Put $38 Billion Into Credit Markets”

  1. ja Says:

    I envision a bunch of dumbass government men sitting around a table saying; “What are we gonna do now?” “I know, how bout we throw some money at it?” “Yeah, that’s a good idea.” “And since we’re not required to have Economics 101 as prerequisite to our position in making these dumbass decisions, why not?”

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