thoughts of Fed's action to money injection

--It used market operations to ensure liqudity because fed fund rate(overnight borrowing cost among banks ) and Repos (no-bank borrowing rate) are way too high(Fed Fund Rate 6% in openning market > 5.25% target rate) --Fed will promise to open Discount Window to ensure liquidity --If both means are not enough, it might cut interest rate depending on economic indicators --It will cut interest rate under the combination of liquidity crunch, low equipment investment from companies and higher unemployment. Results --Fed Fund Rate dropped 1% Questions exist: --too optimistic:Fed jumped in just two days after FOMC statements in which it sets an optimistic tone... --amount of funds provided is much lower than that of ECB --indicators for business equipment investment Gross Private Domestic Nonresidential Equipment Investment (GPDIPRC% Index)