So, yesterday, as the stock market went crazy over the $200 billion Fed plan, optimism was the order of the day. This is usual. Last time the Fed announced some sort of "economic stimulus" plan, it worked the same way. However, such frenzies are usually short-lived.
Today the question is: Will the plan really work?
For it to work, banks will have to start lending money to each other again, and then they will have to pass that liquidity on to customers. So far, this chain of evenets has not been seen. Listen to this audio from American Public Media for more.
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