Today we got news that there may be help for banks in the form of more liquidity. Yesterday's 25 basis point rate cut didn't cut the mustard for some, but regulators got all their friends back this morning by unveiling their plan to keep money moving. Minyanville.com explains things nicely in their piece titled Five Things You Need to Know....
Why the need for a creative solution from the Fed instead of big rate cuts across the board? The Fed has to worry about more than just keeping the system liquid. Read about the 5 Things and you'll get a nice idea of how some of the moving parts interact.
Further reading:
- Learn about economics at About.com's Economics site
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