Tuesday, February 19, 2008

"massive amounts"

I mean - "massive amounts" - come on, its getting nearly comical:

NEW YORK (Reuters) - Banks in the United States have been quietly borrowing "massive amounts" from the U.S. Federal Reserve in recent weeks, using a new measure the Fed introduced two months ago to help ease the credit crunch, according to a report on the web site of The Financial Times.
So what is really going on? I think there are probably several banks that are having a real liquidity crunch - they won't lend to each other, so they are taking what the fed is giving. Is it something to worry about? I think yes, but it isn't the end of the world - yet.