Fed Pumps Further $630 Billion Into Financial System > General Discussion

Posted: 9/29/2008 7:49:20 AM EDT

I just love how we have all this extra money sitting around....Enough for this, the $700 Billion bailout plan, etc......money for everyone!!

www.bloomberg.com/apps/news?pid=20601087&sid=ahwz_k5JvuB8&refer=home

Fed Pumps Further $630 Billion Into Financial System (Update1)

By Craig Torres and Scott Lanman

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 to $620 billion from $290 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand to $450 billion from $150 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.....................

Posted: 9/29/2008 7:57:42 AM EDT

[#1]

PARTAY!

Posted: 9/29/2008 8:02:58 AM EDT

[#2]

Shit just do away with the 86 amendment to the NFA, jack the fee to $500 and get out of the way as ARFCOM alone solved the entire crisis.

Posted: 9/29/2008 8:10:46 AM EDT

[#3]

Quoted:
Shit just do away with the 86 amendment to the NFA, ~~jack the fee to $500~~ leave the fee at $200 and get out of the way as ARFCOM alone solved the entire crisis.

Posted: 9/29/2008 8:12:47 AM EDT

[#4]

Quoted:

Quoted:
Shit just do away with the 86 amendment to the NFA, ~~jack the fee to $500~~ leave the fee at $200 and get out of the way as ARFCOM alone solved the entire crisis.

Fuck make it $50 and we will create more jobs at Colt, Bushmaster, Rock River, Sig, Rob Arms, FN and everyone in between! I wasn't thinking right there for a moment.

Posted: 9/29/2008 8:31:09 AM EDT

[#5]

Now your getting somewhere!

Posted: 9/29/2008 11:09:26 AM EDT

[#6]

btt

Posted: 9/29/2008 11:36:43 AM EDT

[#7]

OK, now I am confused.

We are all watching the battle over the 700 billion dollar "bail out". While our attention is focused on that, the government throws $630 billion into the banking industry?

What am I missing?

Posted: 9/29/2008 11:39:42 AM EDT

[#8]

So is this some kind of end run around Congress and the American people? Paulsen and Bernanke don't get their blank check so they start printing money to get their 700 billion? This whole administration needs to go. I'm a Republican but Bush should be tarred and feathered for what he's allowing to happen in his administration.

Posted: 9/29/2008 11:42:31 AM EDT

[#9]

Quoted:
OK, now I am confused.

We are all watching the battle over the 700 billion dollar "bail out". While our attention is focused on that, the government throws $630 billion into the banking industry?

What am I missing?

It's the FED, and they're not 'throwing another 630billion' - they just MADE 630 billion new dollars, to replace the money being destroyed by the credit crunch....

Basically, without the FED we would already be in a deflationary spiral right now... Too much money is being destroyed by defaults and by banks reducing the rate at which THEY create replacement money (eg not lending)....

The FED is trying to 'hold the line' by re-inflating the dollar (think a tire with a leak, hooked up to an air compressor - the FED is the air compressor) until the bailout passes....

The problem is, of course, that they cannot cause ENOUGH inflation to hold the line forever - eventually, unless the credit crunch is dealt with, we will have DEFLATION.

Posted: 9/29/2008 11:44:12 AM EDT

[#10]

Quoted:
So is this some kind of end run around Congress and the American people? Paulsen and Bernanke don't get their blank check so they start printing money to get their 700 billion? This whole administration needs to go. I'm a Republican but Bush should be tarred and feathered for what he's allowing to happen in his administration.

No, this isn't an end-run around Congress...

This is what the FED does: create money....

This is not related to the bailout, and does NOTHING in terms of buying mortgage-backed bonds or spending tax dollars...

It's a stopgap measure to keep the money supply from imploding before the bailout passes, and it's done using FEDERAL RESERVE money, not tax money....

Posted: 9/29/2008 11:45:48 AM EDT

[#11]

Quoted:

Quoted:
Shit just do away with the 86 amendment to the NFA, ~~jack the fee to $500~~ leave the fee at $200 and get out of the way as ARFCOM alone solved the entire crisis.

Fuck make it $50 and we will create more jobs at Colt, Bushmaster, Rock River, Sig, Rob Arms, FN and everyone in between! I wasn't thinking right there for a moment.

Preach it!!!

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