If the government is really not concerned about the economy, and as Prez Dubbya would have us believe- it’s not, then they’re doing a really screwed up job of showing it.
The Federal Reserve injected $200bn (£100bn) of fresh funds into the US banking system yesterday as it orchestrated fresh action among the world’s central banks to ease the worsening credit crunch.
Amid concerns that the financial turmoil that began eight months ago had entered a new and dangerous phase, the US central bank said it would allow institutions to offload a wider range of mortgage-backed securities in the hope that it would kick-start lending in the world’s biggest economy.
The move - agreed by central bankers at a meeting of the Bank for International Settlements in Basle on Monday - led to a sharp increase in US share prices and a recovery in the dollar. The Dow Jones was up more than 300 points by early afternoon.
And not only is our own government backed financial institution handing out some dough, our friends are on the sidelines waiting to pick up the slack in the near future.
The ECB will lend up to $15bn for 28 days, while the Bank of England will offer $20bn of three-month loans on March 18 and hold another auction on April 15.
Yesterday’s action was the third co-ordinated central bank response to the financial crisis that began last July.
Third time this has gone down already? Well, throwing more money loans and lowering interest really seems to be doing the trick doesn’t it?
Nick Parsons, head of strategy at NAB Capital, said: “The Fed is digging a firebreak. The fire was threatening to engulf good assets, bad assets, every sort of asset. But there is no fix to the problem in the markets that is going to be quick and easy.”
Ain’t that the truth. That spells trouble for the U.S. We’re the inventors (and mass devourers) of fast food. If it’s not quick and easy, we’re not interested.
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It was a long yesterday… Thanks for the compliment — I... 
I dig your blog, btw.