Okay experts. What does this mean ??

Wall Street wonders about lack of borrowing from Fed

Fri Aug 24, 2007 4:22PM EDT

Reuters

By Richard Leong - Analysis

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NEW YORK (Reuters) - One week into the Fed%26#039;s effort to grease the rusty wheels of the U.S. credit system, Wall Street is wondering just who needs the money because there%26#039;s no line at the window.

Federal Reserve data released late Thursday reveals only a modest increase in direct Fed loans to banks, apart from funds borrowed by five major institutions in what was seen as a symbolic gesture.

None of the five -- Citigroup (C.N: Quote, Profile, Research), JPMorgan Chase (JPM.N: Quote, Profile, Research), Bank of America (BAC.N: Quote, Profile, Research), Wachovia (WB.N: Quote, Profile, Research) and Germany%26#039;s Deutsche Bank (DBKGn.DE: Quote, Profile, Research) -- said they needed the money. The identities of other borrowers is not known.

%26quot;The window is open, but nobody came,%26quot; said Lawrence Dyer, interest rate strategist at HSBC Securities USA, in New York.

Okay experts. What does this mean ??credit counseling

The %26#039;window%26#039; they are referring to is the Discount Window. Literally years ago it was a teller cage at a Fed bank, now it is just term to reflect a bank applying for a loan from the Fed.

The lowering of the discount rate was largely symbolic. While banks can borrow from the Fed, borrowing from each other at the Federal Funds rate is cheaper.

It should not be a surprise that the %26#039;line was empty%26#039;. It would be more of a surprise if it wasn%26#039;t; that would mean that banks stopped loaning to each other, a grim sign of further erosion in the credit market.

Okay experts. What does this mean ??

loan

To me, it means that borrowers are waiting for the rates to drop !|||the feds want to give the impression that they are doing something to boost the economy because of the perception that the economy may be faltering. but it is a false perception.|||People aren%26#039;t buying homes, waiting on the prices to come down and when people aren%26#039;t buying homes, people aren%26#039;t selling homes and the economy as a whole becomes stagnant.