One Response to Wow…. does this graph about federal reserve assets mean what I think it means?

1. 

   Alex

   March 20, 2008 at 9:29 pm

   Hey Vinay

   What this basically shows is that the credit system has frozen up and banks won’t lend to each other, so the Fed has raided its piggy bank to lend to banks at low rates to inject money into the economy

   This isn’t necessarily the disaster it looks like, its actually a smart response to a crisis… however the crisis itself is, of course, the disaster it looks like

   Alex