"I guess it's vodka with the Xanax tonight, eh?"
See post below.
US banks borrowed a record $367.8 billion (£208 billion) a day from the Federal Reserve in the week ended October 1. Data from the US central bank shows how much financial institutions are relying on the Fed in its role as lender of last resort as short-term funding becomes almost impossible to find elsewhere.
The Times | US banks borrow record amount from Fed
But so far, the myriad efforts by government regulators to shore up confidence have seemed to yield little relief among investors, some of whom believed the actions have taken on a haphazard air.
“People are slowly but surely coming to the realization that playing ‘Whack-a-Mole’ with each of these issues as they arise, on an ad hoc basis, doesn’t get the job done,” said Max Bublitz, chief strategist at SCM Advisors, an investment firm in San Francisco.
New York Times | Fed Announces Plan to Buy Short-Term Debt
Note: The Fed's decision to buy up commercial paper and lend directly to companies (many of which appear to be run by criminals), does not address the global liquidity crisis in the banking sector. Bank of America which — despite losing half its value — snapped up the failed Merrill Lynch and Countrywide, will be a key indicator Wednesday.
Palin—McCain Dream Team by Zina Sanders
