Fed Pumps Further $630 Billion Into Financial System

[CampLo]

Source: Bloomberg

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.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5hzUWla7Jg&refer=home

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what happened to democracy?

[Cerridwen]

1. Democracy? I hear it's been rated "sub-prime" and is being traded

cents on the dollar.

[HeresyLives]

2. Well there's your bailout.

Didn't require a vote after all I see.

[snappyturtle]

26. Read this: They been v-e-r-y busy

http://www.nytimes.com/2008/09/30/business/30plan.html?hp

[RoccoR5955]

3. Oh, I see now....

They didn't get what they wanted, so they just printed more money! Bastards! If this is such a crisis, where did the 630 billion come from? Thin air? The moon? China? Or is all money nothing more than a scam, and only worth what those who print and speculate on it declare it to be worth?

:mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad:

[Art_from_Ark]

21. Basically, you have described a fiat currency

"Or is all money nothing more than a scam, and only worth what those who print and speculate on it declare it to be worth?"

[aggiesal]

31. King George: "I don't care about a stinking vote" ...

I'm flooding the market with $630B.
Why should I have to wait for Congress?

[Mesteryo]

40. they didn't print more money...

Foreign govts hold a certain amount of reserves in the Fed and the Fed traded them off in exchange for more dollars.

[geckosfeet]

4. The bailout package is a political football. They will do what they want.

[L. Coyote]

6. More like a Catch 22 political trap.

[geckosfeet]

7. That too. A meaningless give away that will not help heal the economy.

[rcsl1998]

5. Sounds Like The 'Money' Is Worthless - How Much Is In Circulation Now? nt

[bhikkhu]

20. from shadowstats.com

...at an annual growth rate around 18%.

[halobeam]

8. This was BEFORE the vote failed.

---hours before the U.S. House of Representatives rejected a $700 billion bailout---

[defendandprotect]

9. Because the FED runs the country ... !!

[ooglymoogly]

10. The Federal reserve is NOT a government agency

It is a cartel of world bankers who have seized control of this country beginning somewhat before the great depression.

Under a great deal of pressure this country was given to the Federal Reserve lock stock and barrel unknowingly by Woodrow Wilson facilitating the roaring twenties. The great depression sealed the deal and the Fed consolidated its theft.

The bailout is a different kettle of rotten fish though fashioned on the same m.o. and is a time bomb dropped on this country to extort and begin the consolidation once again as much new wealth has been created which the greedy shadows covet.

It is the treasury that prints money based on savings and mortgages which should be regulated 9 to 1 but lately and loosely regulated has been closer to 30 to 1 and that is called gambling the farm on very risky ventures; However in this case it is everybody else's farm.

[Odin2005]

17. Paranoid Libertarian BS.

The Fed was established in order to stop the pattern of banking failures happening regularly every 20 years in the 1800s by creating a bank of last resort.

[ooglymoogly]

28. My, my; What a rapier wit! Scacco matto!

Your razor deductive powers are clearly on the bloody edge of reality, proving your point perfectly.

[aggiesal]

32. The Fed is privately owned by 11 corporations.

It annoys me that we tax payers have to pay the FED
interest to print and borrow our own money.

[Mesteryo]

42. you aren't understanding..

The Fed is a public institution run by Presidentially appointed people. It's not allowed to make any profit and carries force of law. How else do you define govt. agency?

[aggiesal]

45. No you don't understand. ...

The Fed is not a public institution. It is a privately held corporation
own by 11 elite corporations.

Ben Bernanke is the head of the Fed. But he acts a the gov't liason.

When the US wants to print more money, the Fed prints it for us, and then
charges us interest on OUR money.

http://www.save-a-patriot.org/files/view/whofed.html

Today, if the government runs a deficit, the FED prints dollars through the
U.S. Treasury, buys the debt, and the dollars are circulated into the economy.
In 1992, taxpayers paid the FED banking system $286 billion in interest on
debt the FED purchased by printing money virtually cost free (Reference 12, P. 265).
Forty percent of our personal federal income taxes goes to pay this interest.
The FED's books are not open to the public. Congress has yet to audit it.

http://www.apfn.org/APFN/fed_reserve.htm

[Mesteryo]

46. cite an encyclopedia..

Not just some conspiracy site off the internet.

[ooglymoogly]

48. For an understanding of how and for what purpose the Fed

was created and who owns it, go to this link if you can suspend your prejudices long enough to read it.

http://www.populistamerica.com/the_federal_reserve_jekyll_island_monster

[tama]

35. Left-libertarian, right-libertarian?

Any case, Fed is the master and you are it's slave.

[Mesteryo]

41. the Fed is a govt agency...

It's board of governors are appointed by the President and cannot make a profit, it regulates how banks utilize money, and carries force of law. How else do you define government agency?

[ooglymoogly]

47. Wow! Just wow....

your ignorance is stunning.

[Mesteryo]

49. yeah of course...

So what exactly did I say that's ignorant? The President does appoint the governors of the Fed. Consult an encyclopedia.

[roamer65]

11. We are going to pay for this crisis whether we like it or not.

Either we borrow and spend, or we will inflate our way out of it. Pick your poison.

[zeos3]

12. Can someone explain please?

Does this action by the Fed fall on the backs of the taxpayers? Is this money we will be paying interest on? How is this different (or is it) from the proposed bailout?

[femrap]

16. The Federal Reserve is not part

of the gov't. It was created in 1913 by a bunch of very rich white guys. They have been printing money like there's no tomorrow...which dilutes our purchasing power.

Maybe the rich guys are getting scared that they can't keep their system of ripping off the little people going. Maybe this will actually wake up the stupid americans and get them off their sofas.

[illuminaughty]

24. Yep Jeckyll Island

was where it was created. My close friend works for the bastards and it even creeps him out.

[femrap]

29. 'illuminaughty' LOL!!!

Love the name. I interviewed w/ the Fed in KC, MO but sabotaged myself so I didn't have to work there....but it might have been interesting to learn their dirty tricks and see how long I could have lasted before getting fired.

Ask your friend to give us some inside dirty laundry!

[illuminaughty]

34. Thanks. It does get pretty weird

He got hired right before Katrina and talked about the money that had to be burnt...and how surreal it was to see these big "carts" go by with massive amounts of money.

One night his wife came by and spent an evening with me and was kind of non-committal when I asked where her husband was. The next day she said she wasn't allowed to tell me at the time but he had been at the Reserve helping oversee the move of ONE BILLION dollars across town. You probably interviewed at the old building, but when they made the move to the new building they had snipers on the roofs and it was quite an elaborate scenario.

[femrap]

39. Good story! Thx. nt

[zeos3]

33. Thanks for the reply

I get that much of it but what I don't understand is if we pay for it when they pump more money into the "system". I understand about the dollar losing value when they just print more of it but, the way I understand it, they create money by "loaning" it to us and we have to pay it back with interest.

So I guess I need some clarification on when they "pump money into the system", is this more debt that the taxpayers have to pay back with interest?

Thanks for your help.

[tama]

36. Yes

and the yield of "interest-money" from the surpluss of labour per unit of "debt-money" keeps getting weaker and weaker, so the Fed needs to pump exponentially more and more and more of debt to the financial market just to keep it from falling. So basically this system is nothing but another failed attempt to invent perpetuum mobile - and a classic example of trying to fix a problem by creating even more serious problems.

Ain't financial capitalism fun!

[Mesteryo]

43. they rarely just print more money...

They pump money into the system by buying up reserves.

[Historic NY]

13. Our paper money will be good for one thing...soon...the bathroom.

[customerserviceguy]

14. Gotta dumb question

Isn't $630 billion damn near what this bailout bill was supposed to be, anyway? I mean, the final compromise that was hammered out only authorized a portion of the $700 billion without Treasury and Congressional approval, and in one day the Feds can come up with MOST of that without Congressional authority?

So, what did they need this bill for anyway?

[soothsayer]

23. I wonder the same thing. but the bill has to do with buying up bad assets

whereas this is just to free up cash

[Mesteryo]

44. the Fed action...

Traded the reserves foreign banks have at the Fed for more dollars. This isn't necessarily good because it means less foreign reserves in our banks and more money in our system when the dollar is already weak.

[whistle]

15. So the bailout moves ahead anyway

[DainBramaged]

19. Yup, and the Rethugs had their moment in the sun today

but they FAILED miserably, McLame is going to LOSE and FAIL.

[daleo]

18. The Federal Reserve has a room full of Chia Pets

When they water them, they sprout money.

[Art_from_Ark]

22. Could I order a few of those?

I could really use some extra cash right about now

[carlyhippy]

30. I need some of those!

chi chi chia

[Javaman]

25. So $750 billion so far, now $630 billion this past week end and now

they want another $700 billion.

looks like to me that's a total of 2.08 TRILLLLLLLLLLLLLLLLION DOLLARS!!!!

Weeeeeeee... so this is what the end of an empire looks like, huh, I thought there would be more rampaging hoards, but what do I know?

[AlphaCentauri]

27. Why they bother asking congress for a bailout if they can have it anyway

[tama]

37. Because

they wan't to buy the worthless crap for a good price instead of just lending against the collateral of worthless crap.

[riverdeep]

38. Look over here, don't look over here

-swipe.