Fed’s balance sheet says they're done like dinner
The solution is liquidate the Fed. America needs it's own central bank, an institution it actually owns and operates, instead of run by a bunch of jerkoffs for their own private interests. Look folks, you've got a fiat money system that guarantees a kick in the ass. That's an ironclad economic law. Take the shit that's here and more to come - now, instead of pissing away more of the nation's future - for NOTHING. It's over, capiche? This is the rainy day you were told to save for.
Question: Why do Benbanke and Paulson still have jobs?
Do not doubt that this is a real crisis: on the Fed’s balance sheet
Posted on Tuesday, September 30th, 2008 by bsetser
My colleague at the Council on Foreign Relations, Paul Swartz, has graphed the shift in the composition of the Fed’s balance sheet. The Fed has extended a lot of credit to the financial system - and supplied even more liquidity by letting the investment banks borrow some of its Treasuries.
The amazing thing about this graph is that it doesn’t capture all the credit central banks extended to the financial system last week (Paul used the weekly average numbers, not the data for the end of the week) or the new credit that will be provided by the programs that were expanded today. Those programs should allow the Fed to increase its lending even further.
This graph also does not capture the $500 billion the Fed has lent to other central banks through various swap lines - dollars that other central banks have lent to their own troubled institutions.
Right now, the world’s central banks are truly providing the short-term financing to host of troubled banks that are having trouble raising funds in the market. Laurence H Meyers of Macroeconomic Advisers notes:
“The liquidity measures are a stopgap … You’re funding the banks’ balance sheets, but nobody wants to lend money to them because they’re all afraid of insolvency.”
--MORE--
Question: Why do Benbanke and Paulson still have jobs?
Do not doubt that this is a real crisis: on the Fed’s balance sheet
Posted on Tuesday, September 30th, 2008 by bsetser
My colleague at the Council on Foreign Relations, Paul Swartz, has graphed the shift in the composition of the Fed’s balance sheet. The Fed has extended a lot of credit to the financial system - and supplied even more liquidity by letting the investment banks borrow some of its Treasuries.
The amazing thing about this graph is that it doesn’t capture all the credit central banks extended to the financial system last week (Paul used the weekly average numbers, not the data for the end of the week) or the new credit that will be provided by the programs that were expanded today. Those programs should allow the Fed to increase its lending even further.
This graph also does not capture the $500 billion the Fed has lent to other central banks through various swap lines - dollars that other central banks have lent to their own troubled institutions.
Right now, the world’s central banks are truly providing the short-term financing to host of troubled banks that are having trouble raising funds in the market. Laurence H Meyers of Macroeconomic Advisers notes:
“The liquidity measures are a stopgap … You’re funding the banks’ balance sheets, but nobody wants to lend money to them because they’re all afraid of insolvency.”
--MORE--