Bush Pumped $630 Billion Into Financial System On His Own Without Congress Yesterday

[NNN0LHI]

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahwz_k5JvuB8&refer=home

Fed Pumps Further $630 Billion Into Financial System

Sept. 29 (Bloomberg) -- The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.

The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.

``Today's blast of term liquidity will settle the funding markets down, and allow trust to slowly be restored between borrowers and lenders,'' said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. On the other hand, ``the Fed's balance sheet is about to explode.''

[GetTheRightVote]

1. He thinks he is a dictator, pushing our money out as if we do not count once again.

:grr:

[MindMatter]

7. No. This is what the Fed does

The whole concept of this $700Bn bailout being needed to solve a "liquidity" problem would complete bullshit. There is not a single sentence in that 110 pages that affects liquidity in any way. The Fed controls our money supply and they do that every day. There is nothing any Congressman, and Senator, or any President can say about it. The Fed system is completely out of reach of any elected official.

Repeat after me. The Fed, and not Congress, creates money liquidity.

If you don't like that, then let's end the Federal Reserve system.

[Kurt_and_Hunter]

10. You might as well be arguing with a wall

but I appreciate the effort. Fight the good fight.

[MindMatter]

12. :) Thanks

The Fed system really is insidious. People don't have a clue about that. In normal times, they are able to lurk in the background quietly enriching themselves by scamming a modest percentage off of every transaction that happens in our economy. But in times like these, we see just how much power they wield. The Fed is truly more powerful than the US government.

[butterfly77]

2. KICK! and recommended...

[orwell]

3. From the looks of this...

...they are increasing "lines of credit". This is not a direct injection of liquidity but rather a backstop tp calm the short term lending markets. There is a run going on in money markets and they don't have the ready cash available to pay off depositors. This is more of a short term stopgap measure to temporarily reliquify the markets. It is not a permanent injection by any means.

[L0oniX]

4. "Bush ok's use of Monopoly money to bolster economy"

What's next?

[SoCalDem]

5. Problem solved.. congress should give them the "other $70B, and say..mission accomplished

:rofl:

[magellan]

8. LOL! We should consider it a "bailout test-run"

Let's see how long the benefit lasts -- that'll give us a clear indication of how much good the actual bailout will do.

[marmar]

6. Printing more funny money......

His mission to destroy America continues apace.

[Kurt_and_Hunter]

9. Your headline is utterly false

Bush has no authority over the Fed, and the Fed doesn't require congressional approval for monetary actions.

So your headline is a double lie, first factually, then by implication.

[2speak]

11. Wow!

All those that wanted the bailout and said that we needed it or the economy was going to fail have their bailout money. So everything should be OK now. Are you going to listen to them if they come back and ask for more. Why is there going to be a second vote on the bailout. Didn't they get their money? You decide if you should listen to these people anymore about anything.