Wednesday, October 22, 2008

Fed Shovels $500 BILLION Into Money Markets

Where are they getting this money? Printing it? So whose going to have to pay it back (with interest)?


"Money funds to get $540b in Fed financing" by Associated Press | October 22, 2008

WASHINGTON - The Federal Reserve has now come to the aid of money market funds as the government seeks to break the credit logjam that threatens the global economy.

A week after the government announced it would spend $250 billion to buy stakes in US banks, the Fed moved yesterday to help money market funds that have been squeezed by worried investors demanding to cash out their holdings.

:-) Glad I could help!

The Fed said it would provide up to $540 billion in financing to money market mutual funds in a new program called the Money Market Investor Funding Facility. JPMorgan Chase & Co. was chosen to run five special funds that will buy from money market mutual funds certificates of deposit, bank notes, and commercial paper, which is short-term debt companies issue to raise money for payroll or supplies.

And what is their TAXPAYER-FUNDED FEE, huh?

Also yesterday, the Treasury Department said it had selected two major accounting firms to help manage the government's $700 billion rescue program. Ernst & Young will receive $492,000 to provide accounting services, and Pricewaterhouse Coopers will get $191,500 to set up internal controls for the program that will focus on buying distressed real estate assets from banks to encourage lending. ----

So how many TRILLIONS has the FED "loaned out -- I have LOST TRACK it has been SO MUCH and done SO QUIETLY -- and why is NONE of it going for MORTGAGE RELIEF?

Oh, and btw....

"It's is NOT "The Government's Money", it is YOUR money and when the bailout was ramrodded through Congress, we were all told that the money was to be used to buy up defaulted mortgages so that we could go back to buying homes.

Then we find out that the money, YOUR money, $700 billion of it, is being given to the banks and they can pretty much do whatever they want with it. Which means that loans to We The People, who were forced to cough up $700 billion (that is $1700 per household, BTW) will not see any benefit from this bailout after all. The banks are holding onto the money.

Folks, we have been HAD. While the DOW is down today, it is not down consistent with the massive liquidations required to cover $360 billion in Lehman Brothers credit defaults. So, what must be happening is that the $700 billion of YOUR money handed to the banks is being used to cover these losses.

In other words, Wall Street made a killing in the bull market with derivatives, and now that the market has turned bear, We The People get the losses.

When profits remain private, but losses are socialized, THAT is a fascist economy!" -- Webmaster of Wake the Flock Up"