Wait a sec, Bailout fails and Fed Pumps Further $630 Billion Into Financial System

The Congress, the President, and the American people are twisting themselves into knots over the $700 billion bailout. Many people think it is too expensive and will cost the tax payer too much.

But why tap the taxpayer?

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.

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Why not just get the Fed and other central banks to fund the bailouts? It looks like $630 billion dollars is nothing to them. No appropriations, no midnight sessions, no phone calls from angry voters, just a little effort coming up with credit out of thin air.

What is the point of all of this?

The $700 billion for the bailouts is gonna be borrowed anyways so why not just let the Fed print up some money and buy the toxic waste in the financial industry with a front organization that is destined to fail?

And exactly why is there democracy in action when it comes to one huge chunk of money but absolutely none when it comes to another almost equally large chunk of money?

There is more than 1 solution to this problem. The public only gets to see the solutions handpicked to be waved around. The other solutions mean the "plan b" effect seems to be the most realistic.

Central Banks which draw their credit from each other, and the value of the debt they own, have plenty plenty plenty, of imaginary capital they can throw down.

They are the highest issuing crediters in any country.

I think with the Central Banks, 600 + billion investment, they just might be giving some of the speculatory money they made on BS Land and Home Value Prices, in the first place.

I think a good show of faith, would be for the Oil Companies who mark-up gasoline prices on the front end, to help stabilize the economy with the excess of profits they have made for years, profiting on jittery consumers and the WALL Street who enables them.

-ADHD

reply to post by ADHDsux4me


Yeah, this is all interesting to me. This is the first real monetary issue I have seen that has had so much attention. It's like the whole illusionist trick.. you're watching the hand up here while the other one is doing something. They brought this issue to light, but they throw this kind of money, OR MORE, around all the time and say nothing to the public.

I called my state legislators, but I really couldn't help feeling like something is going on. Why would a Treasury Secretary get on his knees and BEG for the money? Why would Nancy Pelosi act so desperate as well? Even blaming the minority because it failed? And President Bush was going nuts trying to get it to pass. But why? I have never seen the leaders act so nuts over something. Maybe it was an act to pull something else off. Perhaps something more sinister?

I don't trust our leaders. Now I know how a dog feels when it's owner is smiling saying, "come here boy" but in his other hand is the leash that will lead it to the vet to be put to sleep. Something just isn't right here...

Originally posted by wutone

Why not just get the Fed and other central banks to fund the bailouts? It looks like $630 billion dollars is nothing to them. No appropriations, no midnight sessions, no phone calls from angry voters, just a little effort coming up with credit out of thin air.

What is the point of all of this?

The $700 billion for the bailouts is gonna be borrowed anyways so why not just let the Fed print up some money and buy the toxic waste in the financial industry with a front organization that is destined to fail?

And exactly why is there democracy in action when it comes to one huge chunk of money but absolutely none when it comes to another almost equally large chunk of money?

It is incredibly bad for the Fed to be doing this because of inflation. If you noticed the value of the dollar dropped today.

The real difference here in whether or not it comes from the Federal Reserve as opposed to the National Treasury is at the very least if comes from the Fed it remains privatized. If it comes from the National Treasury then after we gave up our civil liberties to big brother with the patriot act we would also begin to give up our finances as well. Either way this will make the underlying debt and inflation that much worse in the long run and this will eventually blow up.

WE DON'T CARE

Let The Private Boys Bailout The Private Boys !

Come what may

Yea I was just pointing out the utter insanity of what is going on. There is so much finger pointing going on with these bailouts and yet the Fed pulls off another inflationary move.

All the liquidity figures in the financial world, all the dollars are based on faith. I wonder how many more people it will take to realize that the Fed and the financial system is a load of BS before faith utterly disappears and the whole thing crashes.

Ron Paul mentioned this a few days ago and touched on the inflation it will cause. If you're one for conspiracies of the Fed Res, there is no shortage of evidence pointing to currency debasement these days. A billion here, $630 billion there, pretty soon you're talking real money, to paraphrase the Everett Dirksen quote. All this incredible spending, deficit spending, monetizing of debt, has to end at some point. It also seems like they're trying to make us default, it really does.

shift the money problem to more people!what a genius to think of that!
plan b!
9-22-08 dream
i dreamed that a bomb blew up in the train tunnel as the train entered. the river above was frozen afterward.there is more to the dream! can anybody
else fill in the rest! and the problems to be caused by this action?especially the location! picture this in your mind and lets see if anybody else has had one like it! perfect for marshall law! been laughed at all my life for other dreams revealed and came true. have had this one twice now!

And this is proof that the bailout won't work.

The $630B was pumped BEFORE the bailout went to vote. The market still tanked hard. If $630B didn't fix the problem, $700B won't either.

Check this analysis out

The Fed threw $630 billion into the market before the vote, and yet the S&P 500 was down 40 handles anyway, and in fact tanked after the vote.

Note carefully - Paulson's plan was $700 billion, and Bernanke spent $630 billion - almost the entire amount proposed - but failed to fix the problem.

Got it?

Good.

Now do you see what I've been saying?

reply to post by wutone

Why not just get the Fed and other central banks to fund the bailouts? It looks like $630 billion dollars is nothing to them. No appropriations, no midnight sessions, no phone calls from angry voters, just a little effort coming up with credit out of thin air.

What is the point of all of this?

The $700 billion for the bailouts is gonna be borrowed anyways so why not just let the Fed print up some money and buy the toxic waste in the financial industry with a front organization that is destined to fail?

And exactly why is there democracy in action when it comes to one huge chunk of money but absolutely none when it comes to another almost equally large chunk of money?

The problem with this is that eventually the paper will be worth more then the value. You can't keep printing money out of thin air. Think of it this way, the world has $100. You owned $20 of that. Now, if they print money then the world will have $200 and your $20 will be half the value it used to be.

And if you suggest the bankers take it out of their own pockets then your wasting your breath. They made their money off the scam and they are not about to give it all up.

Wait a minute!! what?? This is just some real BS!!!

I belive you and all, as its the writting on the wall.. But this is the first I am hearing about this.. And it went threw without any annoucments or any talks to us the American people???

More and more I am getting frustrated with this government..

I am sitting here barly making ends meat.. I am at my witts end trying to come up with a mere 200$ this month to pay some bills.. And these guys have the guts to pass all these billions and billions of dollars!!!

Outragous!! I know most of us are having problems comming up with maybe a couple hundred dollars just to get by and live, put food in our bellies.. Cloth our children.. And these bastards spend billions and billions of our dollars!!!!

I should just shut up right now.. Or Im going to keep going on this rant..
Sorry guys and gals, Im very frustrated right now.. And cant sleep.

Im about to pull my hair out of my head.. Or atleast what hair I have left.