Throw another $50 billion in for your effort

The Federal Reserve is at it again, pumping another $50 billion in short-term loans in to the financial system to prevent a freeze up. That brings the total to a cool $360 billion since the auctions started in December. 83 bidders were represented looking for a slice of the loans which were granted at 2.87% interest.

From the AP on the latest $50 billion money-bomb:

The central bank on Tuesday announced the results of its most recent auction “” the 10th since the program started in December, where commercial banks bid to get a slice of another $50 billion in the short-term loans.

It’s part of an ongoing effort by the Fed to help ease the credit crunch, which erupted last August, intensified in December and January and took another turn for the worst in March with the sudden crash of Bear Stearns, the nation’s fifth-largest investment house.

The mighty blows of the housing, credit and financial crises threaten to push the country into a deep recession.

In the latest auction, commercial banks paid an interest rate of 2.870 percent for the loans.
There were 83 bidders for the slice of the $50 billion in 28-day loans. The Fed received bids for $88.3 billion worth of the loans. The auction was conducted on Monday with the results released Tuesday.

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