Fed takes steps to break through credit clogs

"As financial companies have racked up multibillion dollar losses on soured mortgage investments and credit problems spread to other areas, firms have hoarded cash and clamped down on lending. That has crimped spending by people and businesses, which in turn has weighed on the national economy -- a vicious cycle the Fed wants desperately to break."

By the fed pumping (funny, I originally typed "pimping") money into the system with nothing expected in return, I don't see this "vicious cycle" ever breaking.

Oh well. Enjoy it while you can.

Bookmark/Search this post with: