It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
(visit the link for the full news article)
The Federal Reserve announced Wednesday that it was lending $20 billion to banks in the first of four special auctions designed to help alleviate the credit crunch on Wall Street.
The Fed said that it received requests for $61.6 billion in loans from 93 bidders - illustrating strong demand by banks who need short-term funds. The winning bidders will receive their loans, which will mature in 28 days, on Thursday.
Many banks had been wary of borrowing money at the Fed's so-called discount rate of 4.75 percent because it is higher than the federal funds rate of 4.25 percent. The federal funds rate is what banks charge each other for overnight loans. The Fed lowered both rates last week by a quarter of a percentage point.
In addition, market observers feel that there is a stigma attached with borrowing at the discount rate because it may be a sign that banks are so desperate for short-term cash that they are willing to pay the higher interest rate for the funds.
Originally posted by elevatedone
Is this really going to help, aren't we just digging a hole, deeper and deeper?
it is impossible to "debauch" Gold itself. But debauching money is not difficult at all. Both the Greeks and the Romans "clipped" their Gold and silver coinage - they began to mix more and more base metals with the Gold and Silver in their coins. Marco Polo brought to the West the first stories of paper money, introduced by Kublai Khan and made from the bark of the mulberry tree. Bankers, who were originally Goldsmiths who stored Gold for other people and charged a fee for their services, began to issue paper "receipts" for the Gold. As these receipts became more widely acceptable in exchange, the idea of "paper money" was introduced. Of course, the bankers couldn't resist. They began to issue more "receipts" than they had Gold with which to redeem them. And one of the first things that these bankers did with this "excess paper" was to lend it to Monarchs, and to early governments.
Originally posted by Rockpuck
It would measure in the trillions, hell $500 billion loaned by the EU to EU banks today alone.
Perhaps the entire institution of Banks should be abolished.