Fed injects 630 billion dollars into financial system

http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5hzUWla7Jg&refer=home


The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.

``Today's blast of term liquidity will settle the funding markets down, and allow trust to slowly be restored between borrowers and lenders,'' said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. On the other hand, ``the Fed's balance sheet is about to explode

which in the case of the greenback might be an apt description

If the fed can run off 600 billion dollars like THAT....and if we ultimately pay for THAT....why all the fuss over 700 billion? I mean--what exactly is going on with this money and why is the Fed action not being talked about on the news? Maybe I'm missing something.

What's the difference here?

/Confused---not an economist and don't play one on T.V.