Fed Loans Another $75 Billion To Struggling Banks

[Purveyor]

Source: Associated Press

WASHINGTON—Working to relieve stressed credit markets, the Federal Reserve has auctioned another $75 billion in loans to squeezed banks, bringing the total to $510 billion since December.
The central bank on Tuesday announced the results of its most recent auction—the 12th—since the program to help banks overcome credit problems started in December.

It's part of an ongoing effort by the Fed to help ease the credit crunch, which erupted last August and hit a crisis point in March with the near collapse and forced sale of Bear Stearns, the nation's fifth-largest investment house, to JP Morgan Chase & Co.

Housing, credit and financial problems have weighed heavily on the economy, sharply slowing its growth.

--
In mid-December the Fed announced it was creating an auction program that would give banks a new way to get short-term loans from the central bank and to help them over the credit hump. A global credit crunch has made banks reluctant to lend to each other, which has crimped lending to individuals and businesses.

The smooth flow of credit is the economy's life blood. It permits people to finance big-ticket
purchases, such as homes and cars, and help businesses expand operations and hire workers.
Wanting to avert a broader panic that could endanger the entire U.S. financial system, the Fed has taken a number of extraordinary action to provide relief.

In its broadest extension of lending authority since the 1930s, the central bank agreed to temporarily let investment firms obtain emergency loans directly from the Fed, a privilege that only commercial banks had been granted.


Read more: http://ydr.inyork.com/ci_9321889

[Hydra]

1. Bailouts for the rich

And none for the "normals."

Socialism for the rich- why are so many people afraid to have socialism for everyone, I wonder?

[coalition_unwilling]

16. And for the 'rentiers' (as Karl Marx would have employed the term), meaning

those who own capital (and 'rent' it out) but do not make a living from their own labor.

[Lorien]

2. Megacorporations; America's Welfare Kings

Unfreakingbelievable.

[flashl]

3. Daily borrowing ...

Investment firms borrow from Fed at fairly steady pace
May 16, 2008

WASHINGTON (AP) — Wall Street investment companies are borrowing from the Federal Reserve's emergency lending program at a fairly steady pace.

The Federal Reserve said in a report Thursday that those firms averaged $16.6 billion in daily borrowing over the past week. That compared with $16.5 billion in the previous week. In the prior five weeks, investment firms had reduced their borrowing from the central bank.

The program, which began March 17, is one of several unconventional actions the Fed has taken to help financial companies and the national economy overcome fallout from housing, credit and financial problems.

...

Banks, meanwhile, stepped up their borrowing. Banks averaged $14.4 billion in daily borrowing for the week ending May 14. That compared with $11.7 billion for the previous week. The identities of commercial banks and investment houses are not released.

USA Today

[Robbien]

4. Identities not released

Of course the banks are stepping up their borrowing. There are no bad consequences for them. Alls good.

[cliss]

12. Wow, thax for the update flashl.

It's my understanding this is the ONLY thing that's keeping the banks afloat right now. They are all going to the Fed, getting money, lending it out and somehow surviving.

Analysts say that they are so desperate for cash, that this is the only way for them to keep going.

Scary, absolutey hair raising. And yet, the papers are saying "looks like we made it through, there won't be any recession after all".

[ronnie624]

25. Scary indeed.

The ongoing despoilment of our national treasury by the social and political elites. As someone upthread mentioned, its socialism for the wealthy.

How will we - the working classes - ever begin to prepare our country for what lies ahead - global climate change, energy shortages, etc - when all of the resources and revenue are being plundered and squandered by these parasites?

[high density]

5. Half a trillion bucks?

So we cut $160 billion in "stimulus" checks. $510 billion has been given to banks and "investment" firms. When do we stop and realize that endlessly throwing money at something does not fix the core problems of our economy? If only individuals could take out loans at a rate of 2.1%, instead they're being charged ten times that on revolving line balances.

[KansDem]

10. "If only individuals could take out loans at a rate of 2.1%..."

This deserves it's own thread. Why, indeed, can't we take out loans for this amount of interest, instead of getting a "introductory" rate of 15.9% which goes up to 29.9% the first time we miss a payment due date...???

[closeupready]

6. Insane.

All I can say.

[TNOE]

7. Just another transfer of wealth

from the US Treasury via we taxpayers to the corporations. Same with the Iraq/Afghanistan wars -
They've only got 8 months left to take it all.

$2 Trillion missing from the Pentagon 9/10/01
Halliburton, KBR, Blackwater
Oil Companies
Weapons Industries
Bankers


Bush et al was the best thing that ever happened to these multi-millionaires and corporations.

[Lochloosa]

8. It wasn't enough....

The Fed received bids for $84.4 billion worth of the loans. The auction was conducted on Monday with the results released on Tuesday.

[whistle]

9. How much is that now since July 2007, well over $650 billion I'm sure

....but it is not even the tip of the iceberg.

These Central Bank speculators with all their derivatives and hybrid financial hedge fund schemes are obligated to well over $750 trillion in debt commitments, a figure that is not only staggering but literally an amount that could never be repaid. So failure and meltdown are inevitable

[KansDem]

11. $650 billion / 300,000,000 Americans = $2,167 for every man, woman, & child.

$3 trillion (Iraq War) / 300,000,000 Americans = $10,000 for every man, woman, & child.

So, the Iraq War plus the Big Bank Bailout costs every American $12,167. That's $48,668 for a family of four.

I don't ever want to hear another Repub say we can't afford government-financed educational, social, or health-care programs!!! :grr:

[PSPS]

13. Yeah, these are "loans." Sure.

[fascisthunter]

14. Socialism for the Rich, but Not for the Everyone else

[Mountainman]

15. The fed is not part of the federal government right? Yet it can dispense with federal dollars.

Why?

The fed decides what our priorities are not the tax payers. When you hear about the billions spent on the war and the billions loaned to banks doesn't it seem petty to not want to spend a few million on health care? Where the hell are our priorities?

[NuttyFluffers]

17. damn, all GOP ever does is throw money at a problem.

war
banks
economy
gasoline
housing
healthcare
all disasters, natural and man-made...
and, as if to make it all better, a cash advance on our tax refund to bribe the common folk to sit down and shut up.

all republicans ever do is throw money at a problem. they never actually DO any good action for americans. they just throw good money after bad, and then their friends suddenly strike it rich.

[aquart]

21. And don't you forget it.

Because most of this country will, and someone's gonna have to remind them.

[HCE SuiGeneris]

18. Another dollar devaluation. Gas to $150 a barrel coming soon.

With each money printing we all lose wages and purchasing power. Thanks guys. x(

[earth mom]

19. K & R! nt

[aquart]

20. And they will pay us back at what rate of interest?

[tabasco]

22. Republicans screech! : "End the welfare state!!"

Where's the outrage??

:shrug:

[bluesmail]

23. K&R Tangled. Broken. Damaged.

[CanonRay]

24. So when are these "loans" due?

and how the hell are the banks going to pay them back?

[Blue_Tires]

26. but no universal healthcare because that's "socialist!!!!"

stories like these need to be tattooed to the inside eyelids of all 'free-marketers' out there...