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“Fed Foreign Bank Lifelines May Reach $1 Trillion, Congress Told”— What??

19 Dec

 So,… I’m not sure what I’ll have to do in order to wrap my head around this one. The Federal Reserve is starting to loan European Central Banks money at virtually no interest in order to help stabilize the EU.

 I understand the immediate urgency involved as far as keeping the European Union from a disastrous collapse,…. I really do.

 However,…. I ALSO understand the immediate urgency as far as—–

 25% of mortgages underwater in this country, and foreclosures, (and foreclosure fraud), at record levels.

 Teachers and other government workers being demonized and thrown out the door, also at record levels.

 Coming closer all the time to 50% of americans being below or just above the poverty line,… and the same number of people being either uninsured medically, or vastly underinsured. The underinsured thing is so much more of a problem than most people would realize. Being able to get meds, or see a doctor about a cold is great, I suppose. But when there’s a real, serious illness, most people just can’t keep up financially.

 No jobs!!! Do you hear me, republican obstructionists???  Your job creators are still only creating in other countries where they can save on labor and pocket more. You know,…. the places that give Newt Gingrich and his buddies the idea that child labor is a wonderful thing. Profit! Profit! Profit!!  10 year olds don’t demand much.

 Why don’t we take some of that ‘interest-free loan’ stuff and,—-maybe,—- do some infrastructure, job program, actually help educators, and whatever else that could actually benefit people ——here!

 I think that, … even for a really, really skeptical guy like me,…. things like this show me more and more that the public has absolutely no idea where the money goes., or how it’s used. And it keeps me bummed.

>>>Dec. 15 (Bloomberg) — The Federal Reserve may lend $1 trillion to central banks as Europe’s crisis roils markets and erodes confidence in the region’s lenders, Anthony Sanders, a George Mason University finance professor, told Congress.

http://www.businessweek.com/news/2011-12-19/fed-foreign-bank-lifelines-may-reach-1-trillion-congress-told9.html

The swaps program may “get to the $1 trillion level, or perhaps even higher,” said Sanders, a former director of mortgage-bond research at Deutsche Bank AG. He spoke today before the U.S. House of Representatives Committee on Oversight and Government Reform’s subcommittee on financial-services bailouts, led by Patrick McHenry, a North Carolina Republican.

Loans on the swaps program jumped to $54.3 billion as of Dec. 14 from $2.3 billion a week earlier, Federal Reserve data show. Draws by the European Central Bank surged after the Fed on Nov. 30 announced it would cut rates on the program. The Federal Reserve’s overall balance sheet stands at $2.9 trillion.

Fed Chairman Ben S. Bernanke yesterday told a closed-door gathering of Republican senators that the Fed won’t provide more aid to European banks beyond the swap lines and the discount window — another Fed program that provides emergency funds to U.S. banks, including U.S. branches of foreign banks.

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Posted by on December 19, 2011 in Uncategorized

 

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