Fed orders emergency rate cut, other banks follow

Federal Reserve Chairman Ben Bernanke speaks to the National Association for Business Economics (NABE) about the current state of the economy in Washington, October 7, 2008. (Mitch Dumke/Reuters)

The Federal Reserve, acting in coordination with other global central banking authorities, cut a key U.S. interest rate by half a percentage point Wednesday to steady a teetering economy.

Federal Reserve to buy massive amounts of short-term debts

The Federal Reserve, through its power to raise and lower interest rates, exercises more influence over economic growth and the level of employment than any other government entity. That unusual role dates from the 1970s, when the executive branch and Congress pulled back from the use of fiscal tools — vast New Deal spending and targeted tax cuts — as a means of regulating prosperity.

The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.

Fed plows $30 billion in money markets overseas

The Fed's action -- taken at 1 a.m. EDT -- sets up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.

Dirty deeds done in the dark...

Tensions mount over bail-out

At 5 pm Nancy Pelosi, the speaker of the House of Representatives, issued a statement that said: “Congress will respond to the financial markets crisis by taking action this week in a bipartisan manner.” But it added “we will not simply hand over a $700bn blank cheque to Wall Street.” Democrats would insist on “independent oversight, protections for homeowners and constraints on excessive executive compensation.”

Many economists skeptical of bailout

Many of the same economists and opinion-makers who'd provided a bipartisan sheen of consensus to Treasury Secretary Henry Paulson's previous moves have quickly begun casting doubts on the wisdom of a policy that would allow Treasury to purchase without oversight hundreds of billions of dollars of difficult-to-price assets from financial institutions.

Well, NO Sh*T!

Paulson resists calls to help homeowners

Treasury Secretary Henry Paulson said Sunday that the nation's credit markets remain frozen and Congress must move quickly to pass a $700 billion bailout package for financial firms. But key Democrats said the legislation needs changes to provide better protections for taxpayers and homeowners in danger of losing their homes.

$700 BILLION for Big Business and Banks but not a dime for the poor taxpayers who gets stuck with the bill...

Bush team, Congress negotiate $700B bailout

The rescue plan would give Washington broad authority to purchase bad mortgage-related assets from U.S. financial institutions for the next two years. It does not specify which institutions qualify or what, if anything, the government would get in return for the unprecedented infusion.

Vast bailout plan proposed in the U.S.

Congressional leaders met Thursday with Ben Bernanke, the Fed chairman, second from left; Treasury Secretary Henry Paulson Jr.; and Christopher Cox, chairman of the Securities and Exchange Commission, about a rescue plan. (David Brody/Bloomberg News)

While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. The proposal could result in the most direct commitment of taxpayer funds so far in the financial crisis that Fed and Treasury officials say is the worst they have ever seen.

Okay boys, capitalism is good except when it isn't - now we NATIONALIZE...

US Fed injects $180bn to stabilise global markets

The US Federal Reserve is lending the Bank of England, the European Central Bank (ECB), the Swiss National Bank and the central banks of Canada and Japan billions of dollars to pump into their financial systems.

Europe and Asia see U.S. as no longer practicing what it preaches

Mario Monti, former EU competition commissioner, said the credibility of the market economy has been hurt.

In extending a last-minute $85 billion lifeline to AIG, the troubled insurer, Washington has not only turned away from decades of rhetoric about the virtues of the free market and the dangers of government intervention, it has also likely undercut future American efforts to promote such policies abroad.

Worst Crisis Since '30s, With No End Yet in Sight

Lingering hopes that the damage could be contained to a handful of financial institutions that made bad bets on mortgages have evaporated. New fault lines are emerging beyond the original problem -- troubled subprime mortgages -- in areas like credit-default swaps, the credit insurance contracts sold by American International Group Inc. and others firms. There's also a growing sense of wariness about the health of trading partners.

Dollar tumbles after retail sales drop

"The dollar dropped to its lowest level against the yen in more than two and a half years on Tuesday after weak US economic data opened the door for aggressive interest rate cuts from the Federal Reserve."