How does "totalling liquidity" back the financial market?

Is the Fed simply making loans to big investors (like bank and put off funds) to aid them flaunt Margin Calls?

Answers:
When the Fed be adding up liquidity this week, they be in reality buying mortgage thesis within the souk. Heard conflicting reports whether they be buying sub-prime securiites or big level broadsheet. If they be buying sub-prime mortgages, you could right to be heard that some get bailed out. But they be also setting a price for sub-prime, which could support facilitate adjectives transactions within the marketplace. To do this contained by a predetermined amount to settle the souk is probably ok, but subprime investors should lift some funds losses since they invested in stupid loans.


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