Sub-prime collapse 'beyond the US Federal Reserve'

* US Federal Reserve 'lacking funds to help crisis'
* Losses yet to come 'easily exceed remaining $400bn'
* Not going to be able to deal with situation on own

FEARS are growing that the US Federal Reserve may soon find itself short of the funds needed to continue propping up the nation's financial system.

The central bank yesterday used its financial muscle to back the bail-out of the stricken Wall Street investment banking giant Bear Stearns, which will be taken over by rival JPMorgan Chase at a fraction of its worth last week.

But analysts believe the threat to the financial system, which continues to flow from the collapse of the sub-prime mortage market last year, is getting too big for the Federal Reserve.

More:

http://www.news.com.au/business/story/0,23636,23393912-462,00.html

This article comes from Australia. Too bad we have to look to the UK, Europe, Asia or Oz for any real news.

Ef the effing Fed. I seriously hope this is the end for them.

and paid for. We are the enablers that sit back year after year, complaining and not doing much more. Eventually, our governments actions will come to a head and Americans will be faced with a choice...except being sheep or make change happen. I think when it hits the fan, maybe then the government will be run by the people for the people or its game over for the people.

The bad paper mortgage companies sold to hedge funds and hedge funds laundered into iffy assets is infecting every institutional investor out there. Every bank in the world will likely be holding an empty bag of some sort. Some will be hit far harder than others.

The Fed doesn't have that many tricks at its disposal absent any real leadership from either Congress or the Executive on this mess.

You might just get lucky.

The fed HAS no money; it PRINTS money.