Central Banks Offer Extra Funds($247 BILLION) to Calm Money Markets

Sept. 18 (Bloomberg) -- The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion ``to address the continued elevated pressures in U.S. dollar short-term funding markets.'' The Bank of England, the Bank of Canada and the Swiss National Bank also participated.

Finance officials have struggled to restore confidence in markets this week as investors stockpiled money amid mounting concern more banks will follow Lehman Brothers Holdings Inc. into bankruptcy. The cost to hedge against losses on U.S. government debt climbed to a record yesterday, the U.K. government was forced to sponsor a rescue of mortgage lender HBOS Plc and Russia poured money into its banks.

``There's a complete lack of faith in the markets,'' said Jim O'Neill, chief economist at Goldman Sachs Group Inc. in London. ``There's a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=aETAS4RAABPM&refer=home

I'll bet the ink's not dry yet.

More money to calm the markets equals more inflation for you and I.

The Feds and others who are trying to control this insanity are looking more and more like the Keystone Kops with each passing day.

people are hoarding cash, but won't this money end up with people already 'hoarding' cash and won't they hoard the new cash till all our money is just about worthless and they have all the 'marbles'???