Fed pumps billions more into banks

[AlphaCentauri]

Source: CNN

Central bank doubles to $300 billion the amount it will loan banks. Loans could reach $900 billion by end of year.

The Federal Reserve announced Monday that it will make hundreds of billions more dollars available to the nation's banks in return for a wide range of troubled collateral.

The central bank said that its so-called term auction facility, which accepts financial instruments such as mortgage-backed securities as a collateral, will be doubled immediately to $300 billion. The total amount available to banks will rise to $600 billion under the moves announced Monday.

In addition, the Fed signaled it could increase the amount available through those loans to $900 billion by the end of the year, increasing the amount the Fed will loan through the program by $750 billion above its previous limit.

The moves come in the wake of the passage on Friday of a $700 billion bailout bill that will allow Treasury to buy damaged assets directly from banks and Wall Street firms.



Read more: http://money.cnn.com/2008/10/06/news/economy/fed_loans/?postversion=2008100609

[Hydra]

1. But the bailout was supposted to work!!!

:sarcasm:

[seemslikeadream]

2. STOP SADDLING US WITH MORE DEBT

OUR CHILDREN WILL BE SLAVES FOR THEIR ENTIRE LIFES

[whistle]

3. So where is the Federal Reserve getting the hundreds of billions it

...pumps into the banking system? These money's are independent of the $700 billion bailout Paulson is using to buy toxic bank paper. The Fed just adds the new money it makes available to the Federal Debt does it not? According to the U.S. National Debt clock, out debt is accelerating at the rate of $100 billion per month now.

U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 06 Oct 2008 at 03:32:06 PM GMT is:

$10,160,254,692,019.39

The estimated population of the United States is 304,858,753
so each citizen's share of this debt is $33,327.74.

The National Debt has continued to increase an average of
$3.08 billion per day since September 28, 2007!

http://www.brillig.com/debt_clock/

[AlphaCentauri]

5. it doesn't make a difference anymore if the state or the private banks run the economy

just the perception, that we have economic freedom

[TomClash]

4. Meanwhile Trichet is sleeping in Europe

:boring:

And the dollar is up against the Euro. Go figure.

[sarcasmo]

6. Where is the money coming from, thin air? China won't loan us anymore so I guess we just print the

Money. This country is doomed.

[4dsc]

7. Can you say " fiat currency"??

At what point do we have a worthless currency circa 1930's Germany?? Just keep those printing presses going 24/7