The cost? $280 Billion. I think the market sells off tomorrow…
“It came on a day when the Federal Reserve poured almost $300 billion into global credit markets and barely dented the anxiety.
Hoping to shore up confidence with a show of financial shock and awe, the Federal Reserve stunned investors before dawn on Thursday by announcing a plan to provide $180 billion to financial markets through lending programs operated by the European Central Bank and the central banks of Canada, Japan, Britain and Switzerland.
But after an initial sense of relief swept markets in Asia and Europe, the fear quickly returned. Anxiety remained so high that the Federal Reserve had to inject an extra $100 billion, in two waves of $50 billion each, just to keep the benchmark federal funds rate at the Fed’s target of 2 percent.
None of those actions, however, brought much catharsis or relief, with banks around the world remaining too frightened to lend to each other, much less to their customers. This forced Mr. Paulson and Ben S. Bernanke, the Fed chairman, to think the unthinkable: committing taxpayer money to buy hundreds of billions of dollars in distressed assets from struggling institutions.”
http://www.nytimes.com/2008/09/19/business/19fed.html?pagewanted=1&hp
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