New York (CNN Business)A crucial corner of Wall Street suddenly got very sick last week. The Federal Reserve responded with its favorite medicine: injecting markets with tens of billions of dollars of cash each day. That emergency action from the New York Fed appears to have done the trick. The severe stress that emerged in overnight lending markets has largely faded. After spiking last week, borrowing rates have mostly gotten back in line. But the cash crunch has only subsided because of all that free money being pumped in by the Fed. Without emergency cash injections, stress would probably return. Although the NY Fed's rescue is working, it hasn't fixed the underlying problem. "It's like a painkiller. It works, but you're never really dealing with why the market is broken in the first place," said James Bianco, president of Bianco Research. "You're just medicating the market, you're not figuring out why the pain exists." That pain could come back as the third quarter winds to an … [Read more...] about The NY Fed’s rescue is working. But it hasn’t fixed the market
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New York (CNN Business)Mayhem in obscure markets, massive Federal Reserve rescues and a mystery over the cause. The cash crunch that emerged in overnight lending markets this week brings back bad memories of the 2008 crisis. The stress in the overnight lending market, a critical corner of finance that rarely makes headlines, forced the New York Federal Reserve to pump $75 billion into the banking system on Friday. That marks the fourth-straight day of emergency action from the Fed, a level of intervention unseen in more than a decade. And this is just the beginning of the Fed's efforts to ease the cash crunch. The NY Fed announced Friday it will inject up to $75 billion into the overnight markets each weekday until October 10. In addition to this short-term capital, the NY Fed will pump in as much as $90 billion through three 14-day operations. Yet this does not appear to be a repeat of the financial crisis, when banks were too scared to lend to each other. Today, banks are healthy … [Read more...] about The plumbing of the capital markets is clogged. The Fed is still working to fix it
San Francisco is getting a new Navigation Center — possibly as early as next spring — thanks to a $10 million gift from the state. The money is the result of months of discussions among Assemblyman Phil Ting, D-San Francisco, Mayor Ed Lee’s office, the city’s Department of Homelessness and Supportive Housing, and Supervisor Hillary Ronen. It’s the first time the state has set aside funding specifically for a Navigation Center in the city, said Sam Dodge, a deputy director at the city’s homelessness department. And city officials are hoping the new center will be in a permanent location — the four Navigation Centers now open are all temporary. “I think it’s important that the state is recognizing what cities and counties are facing with rising homelessness and contributing to proven solutions,” Dodge said. “This is a game changer for us.” Ting called homelessness “the biggest issue in San Francisco right now. … [Read more...] about $10 million from state will fund new SF Navigation Center
Perched on a busy San Francisco street corner, pockets stuffed with $125 in cash, we tried to hand out free money to passersby. Most people did not take the money. Those who did, did so skeptically. We are told from a young age, "Never take candy from strangers." But what of cold, hard cash? The substance may change, but the attitude does not. Our task began on Chestnut Street in the Marina District, as we took turns approaching strangers to ask if they'd like a few dollars. Many thought we needed change for the parking meters, many kept walking. Nearly everyone didn't want to be bothered. The demographic of passersby was largely what you would expect in the upscale Marina on a weekday afternoon — mostly white, mostly young. Ages ranged from teenage to elderly, and it seemed to matter in our experiment. We're twenty- and thirty-somethings ourselves, so the people most inclined to stop and chat were of the same age. Generally, men were more receptive than women — the latter … [Read more...] about We handed out free money in San Francisco. Here’s what it revealed about our cultural bubble.
PHILADELPHIA (CBS) — There’s new help in the fight against ALS. A Genius Fund, started here in Philadelphia, is aimed at research looking for better treatments for the disease also known as Lou Gehrig’s Disease. Thursday night at the Franklin Institute, the Genius Fund will hold it’s first event called Meet the Geniuses, the people leading research on ALS. The inspiration started with a shocking diagnosis. Mollie Elkman and her husband, Daniel Gerson, never thought they’d be so involved with brain research, but it’s now a life mission. “It’s gonna impact, potentially, every generation,” said Gerson, who’s mom has ALS. The mission is to save their family and others impacted by ALS. Gerson’s mom has a form of ALS that runs in families. Doctors explained that Gerson and his children are at risk. “It was like a moment that changes your life forever, literally in one moment,” Elkman said. “Sheer panic, … [Read more...] about Genius Fund Looking To Improve ALS Treatments, Holding First Event At Franklin Institute