Fed pumps 47.25 bln dlrs into US banking system

Fed pumps 47.25 bln dlrs into US banking system

afp.google.com

The Federal Reserve injected 47.25 billion dollars into US money markets Thursday to help ease tight liquidity, the central bank said.

It was the largest single-day cash infusion since September 2001... it had injected the money in three separate operations: 19.25 billion dollars in a one-day operation, 20 billion dollars in a six-day operation and eight billion dollars in a 14-day operation.

However, due to the expiration of other operations, the combined injections produced a net increase...

(visit the link for the full news article)



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Economic woes continue.

I noticed that in a week where the markets are not making the big headlines (other than in the financial press) the FED has quietly injected another 47.25 billion dollars into the US banking system to "ease tight liquidity".

This is (yet again) the largest such operation since September 2001.

Notice that the "expiration of other operations" is renewed and maintained and a net increase is reported. I take this as proof positive that the problems with credit liquidity that reached crisis proportions in August are far from over and have simply slipped from the top headlines. Expect some key event caused by the repercussions to take the general public by "surprise" sometime soon.
.

afp.google.com
(visit the link for the full news article)

I learned up close and personal about the economic woes this week. There is a nice little 95 subaru I want to buy. and its not even 4 thousand dollars....I went to Washington Mutual about it (MY bank) and was abruptly told that WaMu no longer does vehicle loans OR lines of credit..............home equity loans ONLY nedd apply, they told me.


So all these BILLIONS of dollars dumped into our system, I will bet you is just some printed cash and is not backed by gold in any way...........I wonder how they think money with no backing is going to help?

[edit on 16-11-2007 by theRiverGoddess]

Originally posted by theRiverGoddess
I wonder how they think money with no backing is going to help?

I'm wondering about that, too. OBE1, where are you? We need your wisdom!

Gools although I am already aware of the effects of printing money and pumping it into the market, maybe we should give a bit of background into why they do it and what happens as a result.

Im not too well versed in economics to give a well detailed explaination, but I have seen some well made threads on things like this from you before. If you would, could you please give a detailed cause and effect. Maybe some background information to previous cases where this happened.

That's a large chunk of change for one day.

What does the 'expiration of other operations' mean, though?It sounds ominous. Does it mean previous cash injections have been taken up, or past debt is being written off, or what?

Originally posted by Gools

Fed pumps 47.25 bln dlrs into US banking system

afp.google.com

found within the text of your link we find:

... The US central (bank) typically buys billions of dollars worth of securities from major banks,
pumping extra cash into the banking system,
which the banks are obliged to repurchase at a later date.

this is not a bail-out in the real definition...but it is a bail-out in a sense.

the favored major investment banks, Murrell Lynch? Citigroup? BofA? WMU, to name a few of the major banks with all that overvalued CDOs and SIVs, which were given highly exaggerated values
(like "AAA" Bonds instead 'aab' as they are found out to actually be worth)
are the 'collateral' the Fed banks are purchasing from the 'Major Investment' Banks in this week's go around.


the fed is propping up the cash supply so the commercial Banks can go on expanding credit to the population....
.and the Major Bank Execuitives may continue getting their outrageous payroll/compensation......
its a policy of ->> 'scratch-my-back- & -I'll-scratch yours'



[edit on 16-11-2007 by St Udio]

reply to post by Gools


So, in essence, they just dumped more credit, i.e. debt to the backers of the Federal Reserve, into the system that the taxpayers are underwriting, in a sense, against their will.

And by doing this, they transfer more real wealth into the hands of the few, no?

Would that be a woefully simple and inadequate way of looking at this situation?



Are we witnessing the "nukes" of an economic war currently being waged by the PTB, as the ignorant sleeping masses worry only about what's up next on the tv box?

[edit on 16-11-2007 by goosdawg]

so yesterday you spent another $50 billion on iraq,and today $50billion is going down the drain!!!,

and its all taxpayers money!.

reply to post by Gools


Wow!!! Now if we only knew exactly how much money was in circulation we would be able to determine the percentage of deflation. I mean, they just injected Bill Gates's net worth into the market. No doubt he's hoarding and holding on to his cash with a tight fist. No doubt those with the means to scoop up those extra dollars will, if they haven't done so already. Probably being used by banks to pay off and settle debts, no doubt. Nothing but bad implications on this news.

reply to post by welivefortheson


Nah, it's just some stuff that The Fed supplied the banking industry. Just a pacifier. That big old baby will probably start whining again sometime around the middle of the week after. Just trying to get everybody through Thanksgiving with something to be thankful for.

Seems like the Fed should bail out distressed homeowners with those grisly sub-prime loans. Force those ridiculous rate increases on the loans to come down 8% - 10%. That would be another way to increase liquidity in the banking system, and it would benefit all parties caught in the jam, not just one party.

This is nothing that a fake sense of liquidity that really doesn't exist, pumping paper money with not backing is just fake.

Only countries like the Arabs emirates oil producing countries, China and India among others are the ones with enough liquidity to do something positive and they are just waiting for the right time.

Bid ‘em up, hit ‘em up
Set ‘em up, get ‘em up
Buy ‘em up, tie ‘em up
You can’t fail!
Bring your money, bring your stash
We’re in need of ready cash
Come to the great all-American sale!

www.economyincrisis.org...

Originally posted by Areal51
Seems like the Fed should bail out distressed homeowners with those grisly sub-prime loans. Force those ridiculous rate increases on the loans to come down 8% - 10%. That would be another way to increase liquidity in the banking system, and it would benefit all parties caught in the jam, not just one party.

Yeah, if they're gonna destroy the dollar at least help the people who will actually be paying it back. But we all know that the Fed was set up to make the rich Very Rich and the middle class Poor.

All the inventions that should have made our lives easier and all of us wealthy, stolen by the Bankers. What idiots we have been as a nation. We allow them (the Banks) to create money out of thin air and not only do they require the counterfeits repaid in full, they want their interest too! I guess the old adage is correct, 'Fools and their Money are soon parted'!

And people wonder why the dollar aint worth 2 squirts of piss

I tell you all, that the big CEOs on the banking system will be celebrating their holidays with their outrageous bonuses thanks to the Federal reserve.

But the regular Joe with debt up to their noses and stuck in the housing crash and homeless will be dreaming of sugar plums and free line of credit to star all over.

Come from the east, come from the west,
Pick out the companies you like best,
Closing out all our American stock,
Everything going on the auction block

www.economyincrisis.org...

Isn't it amazing how the fed is there to relieve the economic woes of the banks,

But the people? F--- 'em, let 'em starve.

So now who do you think the fed works for?

so i went looking to find out how much the interest payments are on the fed loan, and do you think i could find that? wouldn't suprise me to find that most of america's income tax dollars are going to pay it off the interest... because as any banker knows, it's not the debt, it's the compounded interest that counts...... perfect system! and i bet the loans weren't written at the same "low rate" the fed has recently bonused the american people... man, that's one slick scheme... wish i'd have thought of it... then again, that would make me a bad person, wouldn't it!?

Woo HOooo! we're safe for another couple days!! Thanks FED! you saved us!!!!!

reply to post by jmilla


Or not. Look what just happened:

Saudi minister warns of dollar collapse

Deja vu anyone?