Your money at work - in Europe

400 billion in a weeks time is not a lot of money now-a-days. Maybe it is a payoff & not a loan. This is a sharp spike in lending but a drop in the bucket.

market-ticker.denninger.net...
Update: It has been suggested that this may be related to the FASB changes and securitized loans coming back on the balance sheet. If so, where's the alleged memorandum items on the other side and the footnote on FRED? The latter is missing, but the necessary data on FRED to confirm that is not yet updated.

Nonetheless, if this is the case, it's still bad (just not catastrophic) as this will directly hit capital ratios. Or, put another way, where's the additional capital that "should" be there to support what is now on balance sheet and was previously off (never mind that it was crooked as hell to have it off in the first place!)

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to put it in perspective
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finance.yahoo.com... rs=FNM,FRE,XLF,JPM,MS,BAC,C
Government officials want you to know the cost of the bank bailout is going to be around $90 billion, much less than previously feared. But there is, as The Wall Street Journal put it, "one glaring exception" to this otherwise welcome news: The optimistic tally doesn't include Fannie Mae and Freddie Mac.

"Not only do we have those [CBO estimated] losses but we still have $5 trillion in mortgage-backed securities that they guarantee and $2 to $3 trillion in debt. All of this is potentially on the U.S. government's balance sheet until we figure out how to restructure these entities."

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Fannie & Freddie could be 8 Trillion we have to pay.
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Even after congress takes my retirement (and yours) I don't think they would pay down the debt. I think they would blow it at a fetish club (for the right) & the left would keep it for themselves.