US to buy Treasuries!

I don't have time to put up the link from any article in from the daily business journals or from the FED itself, but the plan is to buy up $300 bn worth of long term treasury bonds, in an attempt to inject liquidity to the market.

If you can remember the FED forced banks to take treasuries last year, in order to buy them back at a later date (now) and also as an attempt to back these bank's, with FED securities, but not to overtly inject the banks with excess capital at that time--inflation risks in the long term, probably prompted this move.

I guess the situation keeps on getting worse for the credit situation. No rate cut was decided, however.

But, last weeks information on the continually tightening credit, was an indicator to buying back some of these FED bonds.