Here they go again, another bailout is on the horizon. This makes what? Four, or five?

The US Federal Reserve has offered help to troubled money market mutual funds, as governments announced fresh aid to struggling banks amid signs of thawing credit in the money markets.

In its latest response to recent global financial turmoil, the Federal Reserve announced Tuesday it was putting up up to 540 billion dollars for purchases of highly rated short-term debt, including certificates of deposit and commercial paper, from money market investors.

The market for these assets, which in normal times are considered safe investments offering modest returns, has frozen up in recent weeks as the global financial crisis worsened .

My only question is, where is this money coming from? Apparently it’s not part of any of the other bailouts, so, how does that work?

Oh, I know, you’ll tell me it’s not costing us anything, as the money is being loaned to help in the “shortage”. My experience tells me that anytime the Federal Reserve is involved, it costs us money.

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