The Feds Lend $60B to Help Bring the Credit Markets to Normalcy

According to CNN Money, the Federal Reserve Bank announced the latest of its rigorous measures to address the housing and credit crises – an increase in the amount made available to banks through a new auction process developed in response to the credit crunch.

The amount offered at the next two auctions will be increased from $20B to $30B; a 50% increase.   Both auctions are scheduled to be held in January.

Bush also met with the Finance Working Group in the hopes of staving off a recession, after learning that the jobless rate has climbed to 5%: a two-year high.

But these stringent measures appear to be too little – too late.  Rising fuel costs, the housing slump, the trade deficit and falling dollar, and the credit crunch all portend a recession in 2008 – even though there are some optimistic reports for the end of the year. 

Readers – what do you think?  My personal hopes are that a recovery will be seen as soon as we see new American leadership.   Comments, anyone??