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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.
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?
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?
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?