Breaking --CNBC- Fed is adding BillionsFor a THIRD TIME IN ONE DAY- Unprecedented!

[Blackhatjack]

[Bluebear]

1. PRINT that phantom money, Uncle Sam!

[sarcasmo]

96. Print that worthless money, Uncle Sam.

[Blackhatjack]

2. Details after the break ....n/t

[helderheid]

3. This is not good.

[Blackhatjack]

4. Fed injects Liquidity 3rd time to try and head off huge drop after 3 pm

[Speck Tater]

5. Where's MY share of those billions?

And what are they going to do to prop up the market next Monday. Or Tuesday. Or ...

Sounds like big trouble to me.

[The Backlash Cometh]

34. Don't worry. Republicans are really good at this and you won't spend a penny.

It's coming out of our children's pockets! Aren't Republicans so clever!

[Blackhatjack]

6. This is evidence of a serious problem .... and this bandaid approach does NOT seem to be working

[rodeodance]

13. maybe 3rd time is a charm?

[G_Leo_Criley]

7. lots of yelling on the floor n/t

[TahitiNut]

8. The fed can't be an "employer of last resort" but CAN be a "buyer of last resort."

(Per the corporatists.) Appalling.

[Octafish]

36. Welfare for the Wealthy

To them, We the People are mopes, marks and cannon fodder.

[malaise]

95. 100% correct

This is madness.

[neverforget]

9. Where is this money coming from and where is it going? I haven't a

clue so could someone more informed explain this to me? Please? :)

[rodeodance]

15. Fed. Reserve has pumped in Billions today (your taxpayer $)--as did foreign banks

[Occulus]

22. This sounds quite bad

Is the OP correct? The THIRD time today?

[AllegroRondo]

28. the Fed is making loans available

not simply "giving money away".

[rodeodance]

38. true. Part of the 'market' is CREDIT.

[Ikonoklast]

41. OK, they're printing the money

and are going to loan it out.
From thin air.

Wish I could do that.

The Federal Reserve is the biggest scam ever invented in the history of mankind.

[formercia]

54. To entities that might fold by this afternoon

and all that money goes up in smoke and reappears in the account of some very wealthy insider who just sold their shares that they couldn't give away an hour ago..

Trillions to buy up worthless paper with your grandchild's money.

[CoffeeCat]

85. So, this means??

...that the Fed is increasing the money supply? They are increasing the
amount of money that banks can borrow to loan to consumers?

Am I on the right track?

Thanks for any insight.

Increasing the money supply causes inflation--and it would seem--artificially
props up the economy.

[superkia]

30. I dont understand it either?

All I know is that when they said the markets were doing great and the administration said the economy was really great, I didn't make any more money on my paycheck and nothing changed for me. So as its going down hopefully it still wont bother me. The only thing I worry about are gas prices because that is the only bill I have that goes up and down, mainly up! I did notice today, that as the Dow numbers went down or up, the gas numbers did the same? Do they have anything to do with each other?

Again I am clueless on this matter?

[EVDebs]

39. See post #32 re LTCM and the 'bubble'

[Javaman]

58. The printing machines at the treasury are going full speed ahead....

never mind that the dollar is based on oil and oil is peaking and other countries are starting to trade in other currencies...

[lumberjack_jeff]

82. Jim Jubak's take

http://articles.moneycentral.msn.com/Investing/JubaksJournal/HowWallStreetGotIntoThisMess.aspx

How did all this happen? As any good con man will tell you, the success of a con depends on the mark wanting to believe. The victim, in essence, talks himself into getting fleeced. In this case, the global investment community wanted to believe that Wall Street and other centers of financial engineering could manufacture investment-grade, long-term debt to meet the huge demand of insurance companies, pension funds and central governments for predictable, long-lived and safe interest-paying investments. Because the need for this paper was so great, these marks were willing to suspend belief. They knew in their heads that you can't manufacture investment-grade debt. But in their hearts they wanted to believe. They needed to believe. They had to believe.

Because, you see, it's the only way out for an aging world that's running a huge shortage of the real stuff. So investors were all too willing to buy fake investment-grade paper -- at prices commanded by the real investment-grade stuff -- until finally the con was revealed as assets were marked to market at 50% or less of their assumed value.

Maybe the easiest place to start to understand this global con is with the U.S. corporate bond market. For the past 25 years, there's been a headlong rush to junk quality in a market that once provided investors with an amazing combination of safety and higher-than-Treasury-bond yields.

more at the link

[lumberjack_jeff]

84. Another pessimistic view...

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/300pointdropjustthestart.aspx

[peacetalksforall]

10. Time to go on vacation.

[spanone]

11. the bu$h* remedy....MORE TAX BREAKS

[libnnc]

12. Well should I put all my 401k shit into bonds now?

I've been trying not to react lately -- thinking if I stick it out in the long run I'd be okay.

:scared:

[jsamuel]

25. That's my question too.

[Alcibiades]

71. I told my wife to do exactly that this morning

We had been talking about it for the last two days, and then a story came on NPR about increased delinquencies on credit card debt and the fallout from that endangers not only banks, but the value of equities in general. I called her at 9:00 and told her to put it all in treasuries.

You should probably do the same. The other shoe has not dropped yet. If it bottoms out and there's an overcorrection, get back in there, but right now there's no safety in equities, domestically or internationally, unless you can manage to invest only in companies that own pawnshops and collection agencies or who make dried beans.

[Golden Raisin]

14. Is Bush in Crawford,

Kennebunkport or Camp David? Sailing, biking or cleaning out brush?

[rodeodance]

17. Kennebunkport-----and WH says bush is monitoring the situation.

[SammyWinstonJack]

:spray:

[Pharaoh]

87. Bush is monitoring

the situation! :rofl: :rofl: :rofl:

Is that suppose to give me comfort!

[hatrack]

16. CLAP for Tinkerbell!! Goddamnit, CLAP!!!!

:eyes:

[Neshanic]

18. I'm clapping...uh oh, I think I squished Tinkerbell!

[Harry Monroe]

92. Nothing penicillin won't cure!!

[SaveAmerica]

109. If that doesn't show up on the next DUzy award show, I'M SUING DU!!

You made me laugh out loud when I should be hip deep in financial planning!

[wiggs]

19. Does this have anything to do with ceasing to report M1 a few months ago? I'm not

an economist or even very knowledgable, but without M1 do we know how many dollars are in the system and how devalued the dollar is?

[hatrack]

20. I think it was M3 thay abandoned

If I recollect correct . . .

[Javaman]

60. yup they did. can't have the public know what's going on can we? nt

[TwilightGardener]

21. I'm clueless on financial matters and the economy, but does this

essentially mean we're borrowing from ourselves to artificially prop up the market?

[hatrack]

24. In a nutshell, yes - except the Fed's using our money to cover tha banks' & brokers losses

Nice for the banks and brokers, huh?

[TwilightGardener]

27. Thanks--relieved to know that the moneymakers will always be assured of their money.

[Javaman]

62. Like writing ourselves an IOU for money we will never have LOL nt

[EVDebs]

32. It's all tied into globalization and hedge funds. This is LTCM all over again

like in the Thai baht situation, all it takes to start is is something like a housing bubble.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x26793

[truedelphi]

46. Oh no not an acronym - what's LTCM??

Lost the Cash Money??

Later till Caught Moneyless??

Laughing that Class Makes (it)??

[EVDebs]

47. Sorry, Long Term Capital Management...the scandalous hedge fund that triggered '97

stock mkt crash

[truedelphi]

52. Thanks!! n/t

[PA Democrat]

My interpretation....

The Federal Reserve System requires financial institutions to maintain a set percentage of the institution's total deposits in an account at the Federal Reserve. Banks will borrow/ lend funds overnight to/ from each other in order to maintain their required "reserves". Banks can also borrow directly from the Fed.

My take on what is going on is that money is tight due to loans going belly up, as well as the fear of more loans going belly up. It sounds like there are quite a few financial institutions who will have a hard time meeting their reserve requirements. The Fed is pumping money into the system to keep financial institutions solvent. They usually do this by buying securities from banks and then depositing the funds into the individual banks' accounts at the Fed.
It sounds like they are buying bundles of mortgage backed securities from banks.

[TwilightGardener]

64. Sounds like a good analysis, but if the faltering mortgage market is the trigger

for all the anxiety and loss of money, what good do mortgage-backed securities do? Again, I am a simpleton, so I apologize if that sounds ignorant.

[PA Democrat]

78. I'm not sure about how the Fed determines which of these

securities they will buy, but they are graded according to risk of the mortgages, which is then factored into the price.

The main goal of the Fed is to prevent a panic within the banking system, so these purchases of securities are really to prop up financial institutions to prevent a much bigger meltdown.

[TwilightGardener]

81. OK, I'm following you. Thanks again.

[Carni]

88. Isn't that kind of like kiting a check? eom

[OzarkDem]

91. Can't they just supsend trading for a while?

Isn't that what they used to do? Stop trading temporarily to let things cool down a little.

[cliss]

23. In the "good news" department,

Top Ramen now comes in very delicious flavours. They've come up with Teriyaki flavour, fried rice, even Thai Lime Top Ramen. Good info.

[TwilightGardener]

26. LOL! Still 13 cents per package--stock up!!

[youthere]

73. 13 cents! What am I, MADE of money?

[Blaze Diem]

37. haaaaaaaaaa..thats funny..fuckin Top Ramen ..

sad but true..
this country has gone berserk....

How do we know all the newly printed money isn't being flown to a private vault somewhere.

Paraguay?
The New Billion $$$ Embassy?
The New World Order is HERE!!

Git yer deeelishus Top Ramen....

We are so fucked. Maybe there won't even be an election in 2008.

[Canuckistanian]

40. LOL

Good news, indeed!

[EVDebs]

43. And maybe cat food doesn't get made in China ? eom

[AndyTiedye]

29. That's Why They Call Him "Helicopter Ben"

[The Backlash Cometh]

31. Grover Norquist is creaming in his pants!

[Up2Late]

33. ...and ALL the Cable "news" are in Super Distraction Mode!

I just flopped around to see how much is dropping today and here's what I saw:

Fox "new" Headline "Chimp Custody: Do we own chimps or are they..."

They were just "Live" for about 5 minutes watching the Space Shuttle dock

CNN/HLN: Video of Monster Truck crashing into crowd/Trapped Miners/VA Tech Shooter Story update...

CNN "EXTREME Weather! (it's HOT!)/Newark Killing...

MSNBC: ???? Running about 10 minutes of Commercials right now.

MSNBC Update: "No Church, No Cash" (Ya gotta go to church or you lose your discounted tuition to school)

[rodeodance]

42. might have known.

[Rainscents]

35. This is NOT good!

We (USA) have no money and they're doing this? My understanding, this is real bad in a long run for the short fix. Neocons goal is coming true... bring American down to her knee completely. My guess is, by end of Nov, 07, stock market will claps completely... Mayan been saying this for eons and no one is listening!

[Jim Sagle]

106. "stock market will claps completely" Quick, get the penicillin!

;)

[bamacrat]

44. A further the dollar will drop, it will become the new peso. n/t

[Javaman]

65. if we are lucky. more like the peso will become the old dollar. LOL nt

[LittleClarkie]

45. What happened to that free market economy that the Republicans talk so much about

the one where you let the chips fall where they may and then let the system equalize itself out.

Or don't they believe in that when it's their chips falling?

[EVDebs]

48. Freefall Market is the new GOP slogan ?

Bush league economics. Beyond voodoo.

[ThomCat]

70. Of course they don't really believe in the free market.

They only believe in rigged markets. "Free market" is just a public relations ploy to them.

[IronLionZion]

76. Republicans are violently AGAINST free market economy

they killed off 3,000 American soldiers to avoid free market competition. Free enterprise scares the shit out of Republicans. It's really the only thing they are afraid of.

What repubs do is called corporate cronyism and no bid contracts.

[PassingFair]

97. !

:applause:

[wryter2000]

80. You got that right

Chips may fall where they may, but only if they're not my chips.

[ORDagnabbit]

49. a good primer to watch

www.moneyasdebt.net

[cui bono]

53. That looks interesting, thanks for the link! n/t

[spanone]

50. where would the dow be now without the fed money?

that's a scary thought

[iamthebandfanman]

51. can you hear that sound ?!

of all that interest money we are going further indebt for !

[DemReadingDU]

55. here is CNBC link

Fed Adds Funds to Financial System For Third Time With $3 Billion


The Federal Reserve added $3 billion of funds to the U.S. financial system, making the third injection of reserves for the day and bringing the Friday total to $38 billion.

The central bank, trying to keep the benchmark federal funds rate around the target 5.25%, began with a $19 billion injection early Friday, followed by $16 billion in mid-morning and $3 billion in early afternoon.

The Fed said earlier Friday that it will provide "reserves as necessary" to "facilitate the orderly functioning of financial markets."

Financial markets in the United States and around the globe have been shaken by fears about spreading credit problems that started with home mortgages for those with tarnished credit histories. Investors are worried that these problems will infect the larger financial system and possibly hurt the U.S. economy.

http://www.cnbc.com/id/20211772

[Javaman]

69. So money has been pumped in for a third time and yet the market is still down...

where would we be if they didn't do that? I'm thinking somewhere around 10,500 or around 11,000.

Weeeeee isn't moron's* strong economy working wonders???

:banghead:

[Zodiak]

56. Isn't this how the Weimer Republic got screwed?

Printed too much money to the point that people were walking about with wheelbarrows of it to but groceries?

I heard something along those lines...probably an exaggeration. But still....inflation was a big problem for the Weimer Republic, which paved the way for....

Well, why inject Godwin?

[Javaman]

67. Funny that you should say that, here's my new wallet. LOL

[libnnc]

68. oh fuck LOL

I'm laughing through the fear...
:hurts:

[suffragette]

79. The wheelbarrow wasn't an exaggeration

http://www.pbs.org/wgbh/commandingheights/shared/minitext/ess_germanhyperinflation.html


This is very troubling news.

[Javaman]

57. billions of what? more of our fiat dollar? oh yeah, that will help in the long run. LOL nt

[inna]

59. LINK, please??....

[libnnc]

63. Well, here's what Bloomberg says

Shouldn't be hard to find, just go to either Bloomberg or CNBC

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahpcjrFi62BQ&refer=home

[libnnc]

66. and this link that was posted upthread

plain as day

http://www.cnbc.com/id/20211772

[Blackhatjack]

61. If we were still on the gold standard, how much gold would we have stockpiled today?

IF every dollar was backed up with an equivalent amount of gold, how many Fort Knox depository facilities would the gold fill?

An interesting thought, and instructive as to the real value of a dollar today.

[defendandprotect]

101. Gold . . . interesting . . . because Dulles and Prescott Bush cashed in American Dollars for Gold --

Sending it off to Hitler -- !!!!

As I recall this . .. just prior to the Depression.

[Major Hogwash]

72. I'll bet the editors of the Wall Street Journal love it.

Just wait for the smoke and mirrors to blow away from this one!

Then you'll see some real shit.

This isn't illegal - it's insane!

[IronLionZion]

74. stock analysts control business in America

all decisions are made to keep these young stock analysts happy: laying off workers, mergers, acquisitions, selling off assets, etc. just for short term gains in the stock price. CEOs stick with a company only long enough to raise the stock price (making millions in their own personal portfolios) or fail and are then fired with a huge severance package. In this country, CEOs are rewarded for failure. In this country we only look forward for the next fiscal quarter. We ought to be looking forward for the next quarter century like the asians do. The asians are kicking our ass.

It's our culture. Long-term savings and investment are not exactly our national virtues. And these stock analysts are like 28 years old. They don't care if you have a job, if the company remains viable, or if you live or die. You can fuck yourself for these stock analysts because they don't give a shit and they don't know shit about shit. All that matters is the motherfucking stock price so the stock analyst is king.

[slipslidingaway]

75. Federal Reserve Bank link

Today
http://www.ny.frb.org/markets/omo/dmm/temp.cfm


Show last 25 operations ››
http://www.ny.frb.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

[nadinbrzezinski]

77. Ok folks this IS trouble

where is the dowjones today, and remember yesterday we had wholesale red numbers in Asia

and how did the european markets do and what about that German bank

This smells of the crisis IS here

On the bright side, yes there is a bright side, the pubbies will not be able to hold this off until a dem takes over and then blame them for it

Poor consolation to be honest

[Blackhatjack]

83. Can you elaborate a little more on your determination 'this IS trouble'

[nadinbrzezinski]

105. Sure, the fact that they have had to add

to the liquidity markets and buy the debt from the sub primes mean that the system is far more unstable than they are letting out

This means that the house of cards is teetering

This is not good

There is a certain air of instability in the system, and far more than they are letting out

This will stabilize this in the short term, but in the long term... it will only make it worst

Of course, this is my opinion and interpretation of the system

By the way, the system is now global

[OldTymeDem]

86. Buying Opportunity! (NT)

[wicket]

89. Jesus Christ!!!!

:wow:

[barbtries]

90. i'm ignorant about financial matters, so please

tell me this: are we about to crash into another great depression?

[FogerRox]

93. Didnt France stop trading mortgage backed securities on thursday

IIRC from the Tom Hartman radio show

[Babsbrain]

94. Does anyone know if this has anything to do with China?

Is this the 'nuclear option' they threatened. Word out of Shanghai is that the Chinese stockmarket has seen record-breaking highs this week.

[PATRICK]

98. A simplistic comment

based on an article years ago talking about crises like this the blackmail balance suggest the US could prop itself only by passing on the pain to Europe or China and other big players that depend on American success. The blackmail doesn't work when they can say no, absorb the pain that they will feel anyway in their own interests and in turn pass the buck to the real politically and economically vulnerable Boss of Bosses. Especially China which quietly lead the way in refusing to put their currency up as sacrifice after the beneficent Saudis(still in mortal fear of their own subjects) precipitously lowered oil prices. At least this is one broad way of looking at it as amateurish and simplistic as I am in these matters. The Chinese can force their people to suffer the Bush fallout. The Europeans can band together and outwit us with somewhat more difficulty. The Saudis can wring their hands. I think we have long ago exhausted this mutual vampiric relationship with the government shaken Japanese. The Bush bubble of raising the stakes in inevitable fraudulent and bumbling adversity only becomes more dangerous the more it is accommodated. Letting it last until the next guy in such a way as to enable MORE idiot emperors ruling the world economy on whim and corruption alone may not be the global conspiracy they all toyed with.

The Europeans got on the wagon on their terms pouring in the big bucks to stop the blackmail and the tsunami and causing the US market to feel the panic and the pain.

Idiot Boy's bully economics and last resort presumption of raw power just needs someone to call the bluff, take the pain intended to enrich Bushworld on their own terms and boomerang back the bill to the WH. This is perhaps why even Reagonomic charlatans like Roberts, now revealed as possibly sincere, are calling for Bush's immediate impeachment.

[creeksneakers2]

99. They'll bail out all the rich people

They won't do a thing for individuals who default on their mortgages.

[defendandprotect]

100. IMPEACHING Bush for bankrupting our Treasury -- sounds logical to me - !!!

[defendandprotect]

102. 6 Years from SURPLUS to bankruptcy . . . a dependable way to end democracy--???

[EVDebs]

103. Clinton--'It's the economy, stupid" ! Tattoo this across Dimsun's forehead, eh ?

http://en.wikipedia.org/wiki/It's_the_economy,_stupid

[w8liftinglady]

104. Ok-I'm brilliant in medicine.what the F&ck does this mean?spell it out

Pm me if you find yourself repeating yourself.

[blondeatlast]

110. No financial wiz am I, but basically it's a response to crashing Dow figures.

It'll flood the upper tier market (the financial industry) but cause serious inflation since it isn't based on any real productivity or product (ie, cars, homes, gold, etc).

It may rescue the dollar overseas TEMPORARILY but will come to bite us in the ass shortly unless something real comes to support it and with the housing market in a severe slump and good domestic jobs virtually nonexistent that isn't likely at all.

[lpbk2713]

107. They must have found the missing pallet loads of cash and all the other missing assets

.... that BushCo can't account for and allegedly has no idea where they went to other than somewhere in Iraq. :shrug:

[malaise]

108. Enter the IMF and the rest of the gang

http://news.bbc.co.uk/1/hi/business/6941615.stm
<snip>
The International Monetary Fund has moved to restore calm on financial markets after two days of turmoil.

The IMF said the current crisis was "manageable", despite continuing falls in share prices around the world.

Over the past two days central banks in several countries pumped billions of dollars into banking systems in an effort to keep money flowing.

Billions of dollars, pounds and euros have been wiped off share values, hitting businesses and individual investors.