$31billion Federal Reserve Bailout Today

Previous: $57billion European Central Bank Bailout Today

The ECB leads the Fed by the nose again:

UPDATE 2-Fed pumps in sizable funds after ECB (Reuters)

Fed Panics Again

The effective Fed funds rate trended up to 5.31%, above the 5.25% target rate, but the Fed did not have to intervene (the effective rate neared 6% in August) yet the Fed overreacted again to stop any hint of a market correction to interest rates. As Not One Cent predicted, Fed open-market actions (and small reductions to interest rates) appease only temporarily because they do almost nothing to remove the fundamental information, collateral, and insolvency problems:

Federal Reserve Pushing on a String

Should Ben Bernanke Resign? Who Should Be the New Federal Reserve Chair?