Fed pumps 47.25 bln dlrs into US banking system

reply to post by Beachcoma


BeachC and I seem to be shadowing one another's posts. This is pocket change compared to what's to come. "Injecting" money isn't going to solve the root issue here -- foreclosures. Soon, investors will have to take their stocks out and then what? Read BComa's post.

[edit on 16-11-2007 by anhinga]

So... $47 billion for a temporary bailout, yet not a penny towards correcting what caused this mess in the first place.

Whatever happened to "Cure the problem, not the symptom"?

Originally posted by gb540
So... $47 billion for a temporary bailout, yet not a penny towards correcting what caused this mess in the first place.

Whatever happened to "Cure the problem, not the symptom"?

Temporary bailouts is what this country has specialized in since 1913 when the Fed cartel began devaluing our money with their Debt Notes. The 'dollar' is worth somewhere around 2 cents compared to its value in 1913. Inflation has been accepted as something normal and we will see our fiat paper collapse like every other in History.

reply to post by gb540


Deficit. Apologies for the one-word answer but the middle class is funding the war, at $20,000 per family.

I have no idea what credit card rates are these days since I refuse to have one, but I know oil is sitting pretty at $95 a barrel. The dollar will soon be worthless and I imagine a lot of broke, middle-class Americans are going to be pulling their stocks out for Christmas gifts.

The “hidden” parts include higher oil prices, treatment for wounded war veterans and interest on credits to pay for the two conflicts, according to the same source.

Time to research the credit card rates, this is all I know about Death on the Installment Plan.

edit: just did, simple as this, I guess, they just keep borrowing...

en.wikipedia.org...

[edit on 16-11-2007 by anhinga]

Originally posted by theRiverGoddess

I wonder how they think money with no backing is going to help?

Oh, it has backing RiverG...the worlds most effective nuclear arsenal, and a [somewhat shaky] petro-dollar agreement

In case you guys haven't found & bookmarked-it yet...here's a link that's become pretty popular recently: The Slosh Report.

For yesterday, it tells us that while the Fed accepted bids in the amount of $47.25BB.....$40.5BB from previous activity matured (expired). This puts the net repo for yesterday at +$6.75BB...you'll find this increase reflected in the 'Total Sloshing' (total outstanding) column.

Treasury Sloshing = U.S. Treasury Bills, Notes, and Bonds.

Agency Sloshing = Bonds issued by Federal agencies like Freddie Mac and Fannie Mae.

MBS Sloshing = Mortgage backed securities...probably contaminated junk.

TIO = The US Treasury Dept' version of the Fed Repo. Banks 'pledge' securities as collateral to the Treasury Dept, in exchange for liquidity (money)..


So the Fed adds/subtracts liquidity to the banking system on an as needed basis, and in the amounts necessary to maintain parity between the effective overnight-lending-rate (the rate banks are charging each other to borrow $ in the real world) with the official Fed target rate...currently 4.50%

reply to post by OBE1


Great post, but the fed-to-bank interest rate is the scam. That's where the fed reserve comes in and do the talking. Bernake isn't as good as lying behind .25 words like Bubble Greenspin was.

The rates from the fed to the banks is where *they* (ie: criminals) make their money. This Wiki page is a joke, but it's right there under interest rates, with a handful of "cit needed" since it's such a dense business, kind of unconstitutional.

A joke because they use phrases like, "and can be as low as 6 to 12% in the USA (2005)" w/ a cit needed, since some broker wrote that trying to sell more and won't reveal who they are. "As low as"?! Read on:

Typical credit cards have interest rates between 7 and 36% in the USA, depending largely upon the bank's risk evaluation methods and the borrower's credit history. Brasil has much higher interest rates, about 50% over that of most developing countries, which average about 200% (Economist, May 2006) [citation needed]

[edit on 16-11-2007 by anhinga]

I have been interested to know, and maybe some of you could give your input, 1) what does the TIC released today have to say? 2) how much debt must be bought monthly by foreigners to pay the interest on our debt? 3) How high can the debt go before no amount of debt purchase will stem it?

The Fed cannot continue its' reckless course of stoking the fires of inflation. The only thing going for the Americans right now is the war in Iraq.

Without the military machine grinding out its' production, the general public would not be able to pick up the slack, and a major recession would result. Bigger than the one in 81 - 82, and perhaps bordering on depression. Watch for it people, because this is by no means over.

This has nothing to do with the validity of the war, and everything to do with bailing out greedy corporate interests at the expense of the average American. Anything else is BS in my opinion.

Many borrowers in the subprime market assumed debts that they could never expect to pay if they were issued at market rates. This caused the continuing upward spiral in the real estate market, allowing for further extension of more improperly qualified credit.

Thankfully in Canada, we are somewhat insulated by our cumbersome lending rules. Paternalistic they may be, but they are what will save our citizens this time around. I have been lending money here for years, and although our borrowers are overextended, it is not as bad as in the States.

If you can, duck and cover, it is going to hit the fan soon.

Money really is the route of all evil and credit is for suckers!!!

Originally posted by KLSyesca
Money really is the route of all evil and credit is for suckers!!!

I believe the quote is " The love of money, is the root of all evil "

As to credit, no comment.

Cheers!

reply to post by HimWhoHathAnEar


Excuse me while I (cough) and then LOL a little...

...okay, lost myself, back with it...

1./2. TIC/Look at what China is doing, dumping the dollar en masse.

3. No one can think that sick, picture the G Depression 2.0 in a meta-postmodern age. I'd rather not... who is going to forgive the last "superpower"'s debt?! There's no one left besides China, so, um, Alex Jones-time as per Endgame "modeled after China's police state soon." Pheasants, homeless, a lot of crime. Middle-class moves to cities, the majority of the country is deserted, and as LaRouche likes to call it, a "new dark age" has begun.... 9.1$ trillion in debt doesn't disappear....

...unreal, there's a site called this: www.newgreatdepression.com...

"China To Dump 1 Trillion Dollars in US Reserves"
digg.com...

"U.S. Industrial Production Index Dropped in October, Reflecting Triple-Curve"
www.larouchepac.com...

Lastly, "More Justification for the Amero & NAU?"
www.vivelecanada.ca...

"Is China Really Dumping the U$D?" (vaguely meaningless "sort of" reporting)
www.dailyfx.com...


[edit on 16-11-2007 by anhinga]

Thank you OBE1 for pointing out the slosh report!

Everyone should take a look at today's (11/16) liquidity DRAIN before jumping to so many conclusions. Put down the tin foil!

11/16/2007 (billions$)

Total Submitted: 28.950
Total Accepted: 5.250
Total Maturing: 19.250
Net Add: -14.000

Will everyone get a hold of themselves, even with the added 6.750 billion yesterday (11/15), today's removal of liquidity took care of that and more.

Visit this site for the straight information:
The Slosh Report

Originally posted by anhinga

9.1$ trillion in debt doesn't disappear....

This fraud of a banking system must be destroyed, or it will destroy us.


You cannot expect the US, or the human race for that matter, to ever pay back a debt with interest when the banks only create the principal of the loans.


The interest is never created, and THIS IS WHY EVERYONE IS IN DEBT.


The longer we allow these systems to prosper and feed off of our productivity, the sicker and uglier this world will become.

Originally posted by dionysius9
The longer we allow these systems to prosper and feed off of our productivity, the sicker and uglier this world will become.

Well said friend. Forgive the one-liner, but you have already said much.

I don't understand how basically printing money and dumping it into the banking system does any good for anyone. The only thing it does is weaken an already worthless dollar even more. The dollar has become the new Peso. Why do people think they can finance themselves out of credit problems? Just makes no sense.

For those who may not have watched it yet, This Video should provide some insight into how all these elements are interconnected. It's a bit long but worth the watch.

~odievk

A weak dollar is not going to help the economy like many markets hopefuls like to claim.

I actually have found in this boards some people that believe that a lower dollar is going to help imports.

But that can not be farther away from the truth.

What a weak dollar is doing is making more and more attractive the reminding companies in our nation that will go on sell as they can not compete any longer with developing nations that our own nation has help grow with free trade and globalization.

What many still do not understand is that as the dollar become worthless to pay for our deficits the standard of living for American citizens will also degrade.

Our government doesn't help either, it can not stop the sell out of our nation and refuse to invest on American and the people that they swore to serve when elected to office.

[edit on 17-11-2007 by marg6043]

Originally posted by Areal51
reply to post by Gools

 

Now if we only knew exactly how much money was in circulation we would be able to determine the percentage of deflation.

OOPS!!! Big edit. That should read: "Now if we only knew exactly how much money was in circulation we would be able to determine the percentage of INFLATION." That is, the value of the dollar decreases because the money supply is increased. I was referring to the fact that The Fed no longer reports how much money is in circulation. Sorry about that.

To be honest I don't really understand all the numbers but it sure does sound very depressing. I'm sure the one good thing to come out of all of this will be a block buster Hollywood film.

[edit on 17uSaturday07/27/20 by paul76]

That's true, they stopped releasing the M3 figures last year so nobody knows the true rate of inflation anymore.

But it doesn't take an economic genius to see where it was headed when they shut it down...