Fed Pumps Further $630 Billion Into Financial System

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.

Comments

[Titosky]

According to Jim Sinclair, they pumped a trillion in last week. So, I'm confused about something. One week they can do it on their own, and the next week they require Congressional action. Rationally speaking, why is last week different from this week? So, in the past 6 business days, they've pumped 1.6 trillion? Is that correct?

Are they going through Congress this time so that they can blame the whole fiasco on Congress down the road? Or what?

[nezumi]

The most important point is, the Fed lends money for the short-term on completely worthless assets, the government bailout will buy them. This will finalize the bill for the taxpayer. For that they need congress approval.

[PT6]

****DELAY PASSING UNTIL AFTER ELECTIONS WHEN WE HAVE MORE CONTROL****
**********­**********­******THIS IS NOT THE OBAMA PLAN!*****­**********­**********­*********

"NO TAXES FOR RICH FOR TWO YEARS!" WHAT "COOKS"

REPUB "COOKS" ARE GOING TO PAY ZERO TAX MONEY FOR NEXT TWO YEARS
WITH NO STRINGS ATTACHED - THIS WILL COST FAR MORE THAN $700 BILLION!
WITH NO CONTROLS

VOTE NO PLEASE VOTE NO!


Tom Delay the old Repub House Leader said he wants the CAPITAL GAINS TAX REDUCED TO ZERO FOR TWO YEARS!

That would be the BIGGEST BAILOUT IN OUR HISTORY!

IT WOULD MAKE THE $700 BILLION LOOK LIKE A peanut!

ANOTHER REPUB TAKE FROM THE MIDDLE CLASS!

OBAMA CAN KISS HIS PACKAGES GOODBYE!

DON'T LET THEM DO THIS!

TO HECK WITH THE HOUSE REPUBS!

House REPBS DON'T WANT TO VOTE FOR FEAR OF LOSING THEIR ELECTIONS SO WAIT!

[themodernleader]

The Fed has taken upon itself to use the American currency for anything it sees wise. Thus, it loans 630 billion in one hour without any discussion or debate. Earlier, it bailed out and loaned hundreds of billions to banks, just how much is unknown. How much will we get returned ? Ten, twenty cents on the dollar? Or none of it? There is no discussion. no explanation. No debate. Not a whimper from our subjugated Congress. No Court challenges. Just awe and silence. Who controls the treasury rules the commonwealth.
When this is done and our currency is printed into worthlessness and our country has been exproppriated by foreign owners and our debt repayment is monitored by international agencies and enforced by the force of arms off the Pacific coast, then we will finally dissolve the Federal Reserve. And American history will be written by others. For ourselves, the Supreme Leader will write our history.

[RebelPatriot]

Ben Bernanke just proved that the $700 Billion Banker Bailout wouldn't work.

throwing away another $700 billion is just throwing cash into a tornado...­.

[glimpse]

i wish this was posted on front page.

so did the bush administration just say, "i don't need your permission, i'll get this money some other way?" or what? do we still need a bailout? i can't wait to see this story develop.

[fignozzle]

i knew i was in over my head trying to figure out what is going on here.
but after reading this i am left wondering what the hell yesterday was all about if they are able to do this.

[43P04T34]

Looks like a near-$700 Billion Bailout to me.

This is how they remove value from what we people have earned and return it to the banks, by printing more of those Federal Reserve Notes and giving them to the banks. (Yeah, as loans, sure.)

To assign (by fiat, or just by say-so) $630 Billion of value to these 'new' Federal Reserve Notes, the the value of the Federal Reserve Notes we're already holding is 'unassigned' (i.e., diluted by or decreased by) $630 Billion of value.

Call it a tax. Call it theft. It happened. It's not the first time, it won't be the last. And now you know what inflation is, why things cost more and more, while your paycheck remains the same (well, decreases, actually).

[NoSillyName]

So why should taxpayers pay to bail out Wall Street? Just keep printing that worthless paper.

[StephenBarry]

" Congress ? We don't need no stinking Congress !! "
Cheech & Chong from their album "USA Up In Smoke"

Democracy is dead. Long live American National Socialism.

[PT6]

In CRISIS can we stand FOUR MONTHS of a POWERLESS PRESIDENT and VICE PRESIDENT?

No! They can not control Their OWN REPUB HOUSE and They are causing MORE DAMAGE!

We MUST START IMPEACHMENT HEARINGS and THE CHARGES ARE:

1. False Statements to Congress and the American People regarding IRAQ.
2. Non-Regulation of Stock, Bond, Banking, and Oil.
3. Non-Enforcement of SEC Rules on "Naked Shorts" that drove Companies to Bankruptcy and Merger.
4. Excessive Leveraging of Oil Market to Force Oil to Record Highs.
5. Non-Regulation of Mortgage Industry that lead to "TRICK" Loans and lost homes.
6. Non-Regulation of Derivatives which combine HIGH RISK LOANS together and Sell as Low Risk.
7. Non-Enforcement of Rules and Regulations in ALL INDUSTRIES.
8. Excessive Executive Pay for POOR PERFORMANCE.

There is literally REAMS of INFORMATION including Video, Audio, Text, Phone, and email evidence to convict these perpetrators.

[OldKnute]

And we would spend the next 4 months DIVIDED and arguing.

If I would ever meet GEORGE BUSH,, I would find it struggle to withhold myself from KISSING THE GROUND HE WALKS ON!

The education he has brought to America in 8 short years, the exposures of the EXCESSES that have lived within America, feeding like a cancer, has cost us very little.

These same lessons cost China her world prominence and innovation, India her leadership of in science, Literature and mathematics, Egypt her spirituality, Rome her Empire, Spain her dreams of discovery, England her Colonies, France her glory as a source of Liberty, Germany her pride and industry, Russia her future and 50 million of her people.

The GREED, The Racism, The Bigotry, The Fanatical Ideologies, The Extremist Views, The Intolerance and HATE, all in the open now,,,, FOR THE WORLD TO SEE!

I would kiss the ground George Bush walks on!

By Example,,, George W. Bush has shown us ALL, reveled all, exposed all, more clearly than would be found in a thousand volumes, from a thousand authors.

Actions DO,,, speak louder than words.

Impeachment?????

Why? George has probably saved MILLIONS of lives, generations of revolt, bloodshed and rebellion, undoubtedly TRILLIONS and TRILLIONS of dollars, had this cancer gone undiagnosed.

I think we should give George a medal!

NOW,,, we can BUILD!

JMO

All the best

Knute Neo-LIB

[Diogenis]

take your meds.

[nezumi]

Clinton was impeached for lewdness. Whatever else the white house does, seems to be a lesser sin.

:-)

[DubiousVoter]

Unfortunately, it's too late to stop it -- Bush knows it and Paulson is being a brave knight -- this "crisis" is as you say, "MUCH MUCH bigger" than foreclosures, let alone the paltry sums of $$ they're throwing at an economy that can eat-up $1.2 Trillion in a few minutes and still look for something to gorge on.

This is a BLOODLETTING, you can see it in their eyes -- they're scared, so you and I should be too.

Bottom line is.... "THEY" win! They found our weakne$$ on 9/11 and this is their counter punch. What a stinging attack on Bush/Cheney; seven years on, seven weeks before the election..­.OUCH!!

Sadly, you and I are about to witness, first hand, the final demise of the Western Empire in all its glorious misery. Live well and be strong!

[RebelPatriot]

oh God sakes...

the Pentagon through Rummy himself announced that they 'lost" 2-3 TRILLION..­.

made that announcement on 9-10-01.

you what knocked that headline off the national CONscience?

[dadw5boys]

Banks hold Taxpayers Hostage day 14 !

Film at 11:00

[OldKnute]

Well,,,, There we go!

Problem Solved. Wall Street got their BILLIONS.

NOW,,, Please know there is TONS of Money out there for Banks to lend. Soooo what are we to gather of this Lending Crunch???

Just what I have warned.

f Wall Street cannot get AMNESTY, draft in secrecy, a New Governmental Agency,,, a Get out of Jail Free Card, MORE Secrecy, Liability and LOSS Insulation,,, in this Bailout Package,,, they,,, THE BANKS,,,,,,, WILL and ARE holding America Hostage.

They are holding you HOSTAGE!
They are holding your businesses HOSTAGE.
They are holding STUDENTS HOSTAGE.

YOU,, the Taxpayer,,,, are being held over a barrel by Banks REFUSING Credit.

GET IT!

This is not a Mushroom Cloud,,, WMDs,,, Saddam,,,, Bin Laden at your door,,, Yellowcake that never was,,, Anthrax that was a home boy,,, Orange Alerts,,, Red Alerts,,, Removing your shoes at airports,,, this is AMERICAN BANKS,,, doing this.

Right before YOUR EYES!

When you vote next month,,,, REMEMBER!

Remember who walked away from your troubles for 8 Years.
Remember who was for Wall Street and NOT YOU.
REMEMBER THESE DAYS!

In the mean time, get your pre3sent car repaired and fixed.

The Next time you hear a Political AD, decrying TAXES,,, Remember YOU PAY,,, They DO NOT,,, that is why they had to come begging to YOU for a,,,, Taxpayer Bailout!

Remember how they are PUNISHING YOU and YOUR CHILDREN, for THEIR MISTAKES.

JMO

All the best

Knute Neo-LIB

[ACRe]

Ooooh. Ooooh.

Can I start printing money, too?

I promise not to be tooooo inflationa­ry....

(Wait until China stops buying our debt because a dollar doesn't go as far as it used to. Sigh.)

[lizr]

you're right. if it means nothing we might as well all be printing it in the cellar...

[thegreatgiginthesky]

So they pumped 630 Billion. What need is there to use taxpayer money?

[ErnestineBass]

That, my dear, is the $630 Billion question.

If a child raids his piggy bank, what does a pig raid?

heh heh