Fed's latest giveaway won't work
The Federal Reserve's $200 billion move on March 11 was perfectly timed to prevent a panic in the financial markets. But that didn't really fix anything, MSN Money's Jim Jubak says -- it merely bought the economy some time to recover. Tuesday March 14th - Telegraph.co.uk "The Fed's dramatic step came after an emergency conference call by governors on Monday night. It followed the melt-down of the US chartered agencies -- Fannie Mae, Freddie Mac, and other lenders -- which together guarantee 60pc of the entire US home loan market. Fannie Mae's share price fell 19pc in panic trading on Monday after Barron's magazine said it may need a rescue package. "The agency crisis was a Tsunami event," said Tim Bond, global strategist at Barclays Capital."The market was starting to question the solvency of bodies that stand at the top of the credit pile. These agencies together wrap or insure $6 trillion of mortgages. They cannot be allowed to fail becaus...