Fed assumes powerful new role in financial crisis

[lligrd]

By TOM RAUM, Associated Press Writer
Tue Oct 7, 5:19 PM ET

WASHINGTON - Dusting off Depression-era emergency powers, the Federal Reserve is extending its reach over the economy as never before, pushing the limits of its authority, if not exceeding them.

Now the nation's central bank is even becoming a source of loans for companies other than banks.

Radical steps by the Fed under chairman Ben Bernanke — all in the name of seeking to halt the panic sweeping financial markets — are turning it into a financial colossus. They're also putting the government deeper in debt and taxpayers further at risk if the various moves fail.

And it's being done with little direct interaction with Capitol Hill. The Fed does not depend on Congress for its budget, including its payroll, and is as much a creature of the nation's banking system as part of the federal government.

More: http://news.yahoo.com/s/ap/20081007/ap_on_an/meltdown_new_fed

[dixiegrrrrl]

1. This is vitally important to notice, y'all.

About a year ago, there were a few news stories that the Fed. was trying to take on new powers.
Essentially it means that Congress has given away another piece of the Constitution, and the
corporacy has gained power over all of the money supply.
The Financial coup was completed when Congress passed the bailout bill.

[AdHocSolver]

2. The pillaging of America BY THE FED began when Greenspan took over back around 1987.

Greenspan pushed for deregulation of the financial industry, he encouraged the raiding of the Social Security Fund to hide the real federal deficit, he promoted excessively low interest rates to spur the stock market bubble and the real estate bubble, and he covered up the slide of the "real" economy to keep the Ponzi schemes going.

Under Bernanke, the Fed is stripping the last bit of meat from the carcass of the American economy for the benefit of the thieves who haven't enriched themselves enough at our expense. This isn't a new role. It is a continuation of what they have been doing all along, dressed up in a new costume.