US Fed announces $800bn stimulus

The Federal Reserve is to inject another $800bn (£526.8bn) into the US economy in a further effort to stabilise the financial system. US Treasury Secretary Henry Paulson said the stimulus package aimed to make more lending available to consumers. About $600bn will be used to buy up mortgage-backed securities while $200bn is being targeted at unfreezing the consumer credit market.

[let me see if I got this: Paulson was given 700B$ to buy up mortgage-backed securities, he chose to give it to the banks instead, so we gave him another 800B$ to do what he didn't do the first time.

Well ok; as long as we're not rewarding failure with it...]

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