Plunge Protection Team Injects $38 Billion Into U.S. Markets
August 11th, 2007Music still playing, no fighting over chairs. Yet.
Via: Yahoo / AP:
Wall Street closed out a difficult week with a mixed finish Friday after the Federal Reserve injected billions of dollars into the banking system to calm markets torn by worries about evaporating credit. The Dow Jones industrials, down more than 200 points during the session, ended with just a 31-point deficit and managed to post a gain for the week.
The stock market, which has been gyrating for weeks over fears that credit is drying up, pared its losses after the Fed’s injections of cash and following morning comments from the central bank that it would do all it can to “facilitate the orderly functioning of financial markets.” The steep declines seen at times during the session and persistent volatility, however, showed the depths of fear that had some investors yanking money out of stocks.
The Fed added $19 billion in liquidity to the market Friday morning, then another $16 billion and, finally, $3 billion.
