Fed To Provide Up To $540 Billion To Aid Money Funds

Bloomberg:

Oct. 21 (Bloomberg) -- The Federal Reserve will provide up to $540 billion in loans to help relieve pressure on money-market mutual funds beset by redemptions.

``Short-term debt markets have been under considerable strain in recent weeks'' as it got tougher for funds to meet withdrawal requests, the Fed said today in a statement in Washington. A Fed official said that about $500 billion has flowed since August out of prime money-market funds, which with other money-market mutual funds control $3.45 trillion.

The initiative is the third government effort to aid the funds, which usually provide a key source of financing for banks and companies. The exodus of investors, sparked by losses following the bankruptcy of Lehman Brothers Holdings Inc., contributed to the freezing of credit that threatens to tip the economy into a prolonged recession.

Read the whole story: Bloomberg

Comments

[yearlin]

Bernanke and Paulson are the biggest smugs of the bunch. Has anyone ever seen them on C-Span? they could care less about the country. these mega bailouts our shrinking us and the world more and more in the hole.

[Sundialsvc4]

The problem is... you can't "provide money" by printing it; by "borrowing" it from nowhere.

You can't take trillions of dollars' worth of stinking, worthless loans, package them into a golden box, wrap a big bow around it, and sell it ... hoping somehow to find the same suckers, now dazzled by "the pretty box."

The first thing that you're going to have to do... is to come-to-grips with the reality that much of what has caused this entire "situation" is the direct result of HIGH-CRIMINAL behavior. There are literally hundreds of "civil officers" who need to be impeached. There might well be more than a hundred Senators and Congressmen who need to be expelled. These people did not uphold their oath-of-office: they deliberately aided-and-abetted fraudulent, felonious acts and did so in part for their own direct gain.

This is why Law is written. This is what Law is for. This is why The Supreme Law exists.

[carriellbee]

The Rig is In to Steal 2008

In this shattering new interview, Stephen Spoonamore goes into harrowing detail about the Bush regime's election fraud, past, present and--if we don't spread the word right now--to come. Since he's the only whistle-blower out there who knows the perps themselves, and how they operate, we have to send this new piece far and wide.

http://www.electiondefensealliance.org/spoonamore_revelations

[carriellbee]

Oops. Accidentally posted here. Was meant to go here --> http://www.huffingtonpost.com/2008/10/20/florida-voting-machines-b_n_136342.html

Sorry about that.

[leevntheus]

And all of these so called "loans". How are they to be repaid? The economy is shrinking down a black hole. There will be no way to repay the loans. Lets face it. People are trying to pull their cash out of everything, and there's not enough cash to go around BECAUSE THE JIG WAS UP ON THE BANKING PONZI SCHEME WELL OVER 5 YEARS AGO!!!

The only thing that work is to unplug the system, hit the reset toggle, plug it back in with new software, and start from square one with something new.

Chaos....we are all about to witness CHAOS. Its no wonder there is a NorthCom Homeland Defense Unit set and ready. This treasonous cabal has been planning this from the beginning.

Welcome to the END of The United States of America.

[Sundialsvc4]

"The end?" (Chuckle....) Hardly.

Rosie the Riveter is around here someplace. So is Uncle Sam. A gang of less than 1,000 high criminals do not bring down a country of 300 million people.

When one idiot unconstitutionally proclaimed that "impeachment is off the table" (referring in this case to just the two top-dog "civil officers"), she affirmed the notion that "law-enforcement will not occur... Let's Party!" And "party" they have done, trying hard to make it impossible not-only to interdict their crimes, but even to know about them.

Unfortunately, there are billions of people on this planet who do not live within these borders, and hence, within their sphere of influence. These people are being massively defrauded also. There does come a time when you simply say to a rogue bully... "I am not going to take this from you anymore." You turn off the light-switch and leave the bully in the dark. You decline to use his form of money. You decline to trade with him. You make it clear that your beef is not with The United States of America, but rather with the reckless thugs who (for the moment at least) are running it.

These leaders really are sociopaths. They'll inflict as much crime on you as you'll accept. But, why accept it? Why put -your- country at risk? Just say, "no."

[leevntheus]

Okay people. They are printing money out of nothing. Loaning nothing between everyone and calling it something. The media is apparently losing track of the bailouts. (remember when it was just little ole Bear Stearns?) And American families are on the hook for the future bill. Trillions and trillions of dollars. Hello...there are only around 150 million working households in America. Its starting to look like HUNDREDS OF THOUSANDS OF DOLLARS PER HOUSEHOLD. Hello!!!!! These bailouts and media explanations of what's going on look more and more like paltry attempts to keep the rioters out of the streets until after the election. I'm a small business person in the service sector and I'm here to tell you - without anything I've done at all- business has STOPPED. NO ONE is spending money on anything other than necessary.

[biwee]

If inflation is too much money chasing too little in the form of goods and services, and with the
FED cranking out who knows how many TRILLIONS of dollars in a shrinking economy producing less in the form of goods and services, I want someone to explain to me just how BAD inflation will be in the coming years.

[uncut0072002]

And where is all this "funny" money coming from. Bet the printing presses at the treasury are wearing out. There is no underlying value to the stocks. Remember the day when a stock rose not because some speculator drove it up but because it bought new assets, opened new plants, increased production or some other logical reason. Now if a Buffet speaks a word the markets move. Like oil stocks are bid up by speculators. Insider trading is rampant. Get real anyone who thinks at some cocktail party things aren't spoken, like so much pillow talk, they aren't living in the real world. Instead choosing to live in some Fox serial world of make believe playing real. Like Germany during WWII at this rate it will take wheelbarrels full of cash to buy a loaf of bread. Have you seen bread prices recently? For Bernke and Paulson its keep the presses running. Economics 101 is don't spend more than you take in, And for those like Zukerman who feel deficit spending is ok, he has forgotten the cardinal rule of politics and that is if a little is good, a lot is got to be fantastic. Wake up and join the real world.

[Sundialsvc4]

Gee, I feel like a Plaintiff.

Me and 300+ million of my best pals.

I think we need some serious Law Enforcement around here. The words "off the table" do not appear in my copy of the Supreme Law Of The Land. The words, "any civil officer ... SHALL be Impeached for...," do.

If no one's enforcing the law, then the law means absolutely squat. And that means that none of the covenants made in the Preamble can ever be achieved.

That's not acceptable. I'm a plaintiff. So are you.

[grossinger]

The Federal Reserve should push for the legalization and taxation of Marijuana. Taxing the weed in my estimation would add $750,000,000,000 to our existing tax base. This would pay for a whole lot of sins. And those sins are a lot worse than kiciing back and smoking a bone. Hey Mr. Bernanke start thinking.