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Fed Moves $421.8 Billion Without Warning, Is the Fed Bailing out Greece?
The Market Oracle ^ | 4-14-2010 | Dr Jeff Lewis

Posted on 04/14/2010 5:56:31 PM PDT by blam

Fed Moves $421.8 Billion Without Warning, Is the Fed Bailing out Greece?

Interest-Rates / Credit Crisis 2010
Apr 14, 2010 - 02:44 PM
By: Dr Jeff Lewis

The St. Louis Federal Reserve Bank, which documents the inner workings and balance sheets at the nation's central bank, just released new research and data suggesting that the Federal Reserve lent $421.8 billion – with no one knowing exactly where it went.

Where’s the Money?

Each week, the St. Louis Fed releases data regarding the Federal Reserve's activity and public balance sheets. In ordinary times, this data is usually largely ignored, as the mainstream media has little interest in probing into the “small” $5-10 billion changes in the Total Loans and Leases of Commercial Banks. The week of March 24-31 was different, however, as the Federal Reserve made $421.8 billion in new loans, more than it made in the week following the Fed's big moves to combat the financial crisis in 2008!

Is the Fed Bailing out Greece?

Economists are all but left in the dark on the actual operations behind the scenes, and they have minimal data to investigate other than what the Federal Reserve is willing to release to the public. However, the timeliness of this most recent surge in lending activity suggests that the Federal Reserve may be taking a hand in bailing out foreign nations, or Greece in particular, by shoveling funds through commercial banks.

This wouldn't be the first time a bank was used to bail out foreign debtors. AIG, the leading recipient of TARP funds, was used as a gateway to transfer US taxpayer funds to foreign banks owed money. Of course, the ailing insurance company virtually collapsed nonetheless, but long after the funds were delivered from the US Treasury to foreign institutions.

Pull the Alarms!

Rarely are large monetary policy decisions made without an explanation from the Federal Reserve, and even more rarely are they conducted in just one week. To put the recent lending in perspective, $421.8 billion is more than the total increases in lending throughout 2005. There has never in the history of the Federal Reserve been such a massive increase in total lending. And never should anyone expect that lending of this magnitude would be done without any explanation. To put it simply, there is big money moving, and no one knows where it's going, for better or for worse.

Timing is Everything

[snip]


TOPICS: Business/Economy; Conspiracy; Politics
KEYWORDS: credit; debt; feds; greece

1 posted on 04/14/2010 5:56:31 PM PDT by blam
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To: blam

More money laundering by Obama.


2 posted on 04/14/2010 5:58:06 PM PDT by CodeToad
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To: blam

Not likely. Greece is a european country. Obama just redistributes wealth to non-european countries/peoples.


3 posted on 04/14/2010 5:58:11 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: blam

It’s time to end the Fed


4 posted on 04/14/2010 5:58:26 PM PDT by Bigtigermike (Loose lips sink ships, stay away RINO's)
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To: blam

Time for some of our Congress people to investigate.


5 posted on 04/14/2010 5:58:48 PM PDT by Parley Baer
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To: blam

I hope they spend it on something better than that job stimulus package they wasted before.


6 posted on 04/14/2010 5:59:36 PM PDT by boycott (CAL)
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To: Secret Agent Man

I hypothesize that we lent it to Germany at 4% interest so they could loan it to Greece at 5% or something like that. The fed doesn’t have to tell so we may never know for sure.


7 posted on 04/14/2010 6:03:50 PM PDT by RC one (WHAT!!!!)
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To: blam

Greece? I bet they bailed out soros


8 posted on 04/14/2010 6:05:06 PM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: blam

Bailing out California?


9 posted on 04/14/2010 6:05:49 PM PDT by Mamzelle (Cameras, cameras--never forget to bring your cameras)
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To: blam

Bush capitulated and his peeps said Fannie and Freddie securities are government guaranteed. Maybe China asked for its “guaranteed” money back.


10 posted on 04/14/2010 6:06:27 PM PDT by Shermy
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To: blam
I'm sorry: exactly whose money are they lending again? Or is half a billion dollars now considered a piddling amount of chump change in the Age of Obama's Funny Money? The media doesn't care, nor does Wall Street, as long as the banks continue to borrow boatloads of printed dollars at 1% interest to lend back to their customers at 29% and otherwise drive up the stock market without creating jobs or wealth? Does no one see where this will all end, or is "catastrophe" just another overused Greek word?
11 posted on 04/14/2010 6:06:49 PM PDT by andy58-in-nh (America does not need to be organized: it needs to be liberated.)
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To: blam

Does this mean we own Greece? I mean, why not? China owns us.


12 posted on 04/14/2010 6:06:52 PM PDT by stboz
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To: blam

.
Oh no they don’t!


13 posted on 04/14/2010 6:07:11 PM PDT by Touch Not the Cat (Where is the light? Wonder if it's weeping somewhere...)
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To: blam

No we sell the German widows and orphans funds freddie and fanny approved mortages on 500,000.00 dollar homes in Hamtrack.


14 posted on 04/14/2010 6:09:21 PM PDT by nkycincinnatikid
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To: blam
........................................The St. Louis Federal Reserve Bank, which documents the inner workings and balance sheets at the nation's central bank, just released new research and data suggesting that the Federal Reserve lent $421.8 billion – with no one knowing exactly where it went.

Interesting.. anyone know where obama was the other day or who he met with when he went missing.

15 posted on 04/14/2010 6:12:11 PM PDT by Irish Eyes
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To: Irish Eyes

I was just htinking about that....Obama came up missing for a few hours and now this? Hmmmmm!


16 posted on 04/14/2010 6:13:14 PM PDT by Bigtigermike (Loose lips sink ships, stay away RINO's)
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To: Bigtigermike
"It’s time to end the Fed "

Great idea - but then who would run the government?

17 posted on 04/14/2010 6:14:20 PM PDT by TPOOH (I wish I could have been Jerry Reed.)
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To: blam

Cash heading to the ROP. The amount is almost exactly what a two week Space Shuttle mission costs.


18 posted on 04/14/2010 6:19:07 PM PDT by buccaneer81 (ECOMCON)
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To: buccaneer81
Yikes! I mean what a trip to Mars would cost. A Shuttle mission is $421 million. Mere chump change.
19 posted on 04/14/2010 6:20:53 PM PDT by buccaneer81 (ECOMCON)
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To: blam

And we still don’t know who moved all the money in October 2008 and why!

I’m sure that the Slimes and the Compost have their best reporters o the job./s


20 posted on 04/14/2010 6:26:25 PM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: blam

Bump.....


21 posted on 04/14/2010 6:28:04 PM PDT by Buddy B (MSgt Retired-USAF - Year: 1972)
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To: blam
Propping up the stock market, more likely.
22 posted on 04/14/2010 6:30:15 PM PDT by hinckley buzzard
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To: buccaneer81

amount is almost exactly what a two week Space Shuttle mission costs

Misplace a decimal point there bucaroo? $400 + BILLION would be one hellofa shuttle ride.


23 posted on 04/14/2010 6:32:55 PM PDT by dusttoyou (libs are all wee wee'd up and no place to go)
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To: blam
No. The jump was caused by "Financial Accounting Statements No. 166". This new set of rules deals with the way U.S. banks must handle off-balance-sheet vehicles (OBSVs).

Prior to the financial crisis, OBSVs were common. When banks acquired particularly risky assets such as sub-prime mortgages, they would create a special holding company to take possession of these instruments.

Banks themselves could then report a pristine balance sheet, uncluttered by high-risk assets. The banks still owned the OBSVs, and if the assets did pan out they could reacquire them and come out golden. If the risky instruments blew up they could be left where they were, with no one the wiser.

This practice was scrutinized heavily following the financial collapse. Regulators decided (rightly) that banks were using OBSVs to distort their balance sheets, giving investors and clients an inaccurate picture of financial health.

So FAS No. 166 was created to "bring the balance sheets home". As of March 31 of this year, banks were forced to bring all off-balance-sheet assets back onto the books.

A good chunk of these assets were loan portfolios, which caused the massive jump in outstanding loans and leases shown in the chart above.
24 posted on 04/14/2010 6:33:13 PM PDT by nc28205
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To: blam

Could become the 58th state.


25 posted on 04/14/2010 6:33:17 PM PDT by bigbob
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To: Liz

Ping


26 posted on 04/14/2010 6:33:24 PM PDT by stephenjohnbanker (Support our troops....and vote out the RINOS!)
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To: dusttoyou

I know. See my next post (#19.) A Mars mission is more like it.


27 posted on 04/14/2010 6:33:55 PM PDT by buccaneer81 (ECOMCON)
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To: NTHockey
>>>And we still don’t know who moved all the money in October 2008 and why!

That story has been debunked.

Kanjorski and the Money Market Funds: The Facts
28 posted on 04/14/2010 6:43:26 PM PDT by nc28205
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To: nc28205

Its all a shell gme of play money for the feds we endupfooting the bill


29 posted on 04/14/2010 6:46:48 PM PDT by truthbetold11 (truthbetold11)
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To: blam

They’re keep the stock market on the rise.


30 posted on 04/14/2010 6:51:46 PM PDT by Carley (I'll keep clinging to the constitution, my guns and my religion, thank you.)
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To: blam

They’re keeping the stock market on the rise.


31 posted on 04/14/2010 6:51:56 PM PDT by Carley (I'll keep clinging to the constitution, my guns and my religion, thank you.)
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To: Bigtigermike

It’s time to end the Fed


Ain’t gonna happen.


32 posted on 04/14/2010 7:00:22 PM PDT by unkus
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To: boycott

A lot of this money might now be in off shore accounts.


33 posted on 04/14/2010 7:01:17 PM PDT by unkus
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To: unkus
I’d guess support almost failed domestic banks.
34 posted on 04/14/2010 7:03:30 PM PDT by east1234 (It's the borders stupid! My new environmentalist inspired tagline: cut, kill, dig and drill)
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To: east1234

Make that supporting


35 posted on 04/14/2010 7:03:49 PM PDT by east1234 (It's the borders stupid! My new environmentalist inspired tagline: cut, kill, dig and drill)
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To: blam

What in the world?


36 posted on 04/14/2010 7:05:30 PM PDT by tutstar (Baptist Ping list - freepmail me to get on or ...off..)
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To: andy58-in-nh
"I'm sorry: exactly whose money are they lending again?"

Hey...GWB gave Africa $50 billions of my money just before he retired to his multimillion dollar house in Dallas... You'd think he'd have sent some of his millions, eh?

37 posted on 04/14/2010 8:36:47 PM PDT by blam
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To: RC one

Since when does government not have to answer where it’s loaning our money? Even if you say the fed is private, they still can be hauled up before Congress and forced to answer.

If not, it’s time to dismantle the Fed completely. We can’t have a private group doing this and that in the billions and trillions with our money and be told we can’t know what they’re doing with it. And then the whole issue of fiat money and fractional reserve lending, don’t get me started.


38 posted on 04/14/2010 10:23:37 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: blam

Man this stuff is poorly understood.

For example it looks like most or all of the TARP money that the fed loaned out to banks in Oct 2008 has been paid back—except by AIG and GM and there were profits of 50-60 billion on the loans so whatever losses that were incurred may have been made up for by profits...

Therefor the original efforts to quell the financial crises of the fall of 08 look to be pretty successful. Right now, that’s what the stock market is telling us.

But just I just don’t know. And neither does it appear — does anyone else.

If the fed loaned out 450 billion...is it likely that they doled out money they planned to lose? I think not.

But once again, I don’t know. Nor does anyone else it appears.


39 posted on 04/15/2010 12:14:41 AM PDT by ckilmer (Phi)
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To: nc28205

Do you mean that Kanjorski lied? How can that be? So the October surprise was all a hoax? Does that mean the election was a fraud?/s

BTW, bad link. It comes up “Page not found”.


40 posted on 04/15/2010 1:51:03 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: stephenjohnbanker
Never in the history of the Federal Reserve has there been such a massive increase in total lending......$421.8B without explanation. There is big money moving, and no one knows where it's going........

In the WH coven, the individual who needs scrutiny is not "Professor Ohaha." He knows nothing about high finance.

Rahm Emanuel was a Wall Street predator----WHO PROCEEDED TO TAKE OVER THE US TREASURY, once he got into the WH.

A COS controlling the Treasury? (shudders). As a Congressman, Emanuel created a "Family Foundation" as a tax dodge. The $421.8B move is one more indication of the calculating Rahm at work.

JUST AS AN EXAMPLE While acting the "succesful investor" and Wall Street advisor, thief Madoff was creating a labyrinth of interrelated international funds, institutions and financial entities of almost unparalleled complexity and breadth...... with assets and businesses in 11 places overseas that hid his rhievery.

The wealthiest Madoffians were businessmen who were funneling income to Madoff to avoid US taxes and banking laws, and acting publicly like do gooder "philanthropists". But they were all tax cheats and money launderers.

Below, is listed other examples of how this Rahm cretin operates.

41 posted on 04/15/2010 3:24:11 AM PDT by Liz (If teens can procreate in a Volkswagen, why does a spotted owl need 2000 acres? JD Hayworth)
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To: All
Rahm Emanuel was a Wall Street predator----WHO PROCEEDED TO TAKE OVER THE US TREASURY, once he got into the WH. Here's how Rahm operates.....the COMPLETE TRANSPARENCY of the Ohaha WH (/snix):

Behind The Real Size of the Wall Street Bailout (Mother Jones reports its $14 trillion)
Mother Jones | Dec. 21, 2009 / FR Posted January 04, 2010 by E. Pluribus Unum

A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.

The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:

Treasury Department bailout programs (controlled by Rahm Emanuel)

Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].

--SNIP--- long read

Federal Reserve bailout programs

Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.

Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.

Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.

Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.

--SNIP--- long read

=========================================

CIRCA Sept 15, 2009 A SHOCKING DISPLAY OF OBAMA'S THIRST FOR POWER

FOX News' Judge Napolitano notes: if implemented, the unconstitutional proposals Obama urged in his Sept 2009 speech to Wall Street will amount to a final coup d’état by banksters, their technocrats and enforcers, at the Federal Reserve (*the privately-held bankster cartel that masquerades as a government agency). Obama's "reforms" would install a dictatorial regulatory power controlled by international bankers oer the entire US economy — down to the local grocer and hot dog vendor on the corner. It will control our lives down to the smallest detail. It will require us to ask permission for the most mundane and routine of financial transactions. IT MUST BE BE RESISTED AT ALL COSTS. VIDEO LINK AVAILABLE Judge Andrew Napolitano On Obama/Bankster Takeover

42 posted on 04/15/2010 3:30:47 AM PDT by Liz (If teens can procreate in a Volkswagen, why does a spotted owl need 2000 acres? JD Hayworth)
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To: mkjessup; sickoflibs

Ping


43 posted on 04/15/2010 4:30:18 AM PDT by stephenjohnbanker (Support our troops....and vote out the RINOS!)
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To: All

If you remember nothing else, remember this....

Federal Reserve bailout programs

Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.

Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.

Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.

Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks. “

” CIRCA Sept 15, 2009 A SHOCKING DISPLAY OF OBAMA’S THIRST FOR POWER

FOX News’ Judge Napolitano notes: if implemented, the unconstitutional proposals Obama urged in his Sept 2009 speech to Wall Street will amount to a final coup d’état by banksters, their technocrats and enforcers, at the Federal Reserve (*the privately-held bankster cartel that masquerades as a government agency). Obama’s “reforms” would install a dictatorial regulatory power controlled by international bankers oer the entire US economy — down to the local grocer and hot dog vendor on the corner. It will control our lives down to the smallest detail. It will require us to ask permission for the most mundane and routine of financial transactions. IT MUST BE BE RESISTED AT ALL COSTS. VIDEO LINK AVAILABLE Judge Andrew Napolitano On Obama/Bankster Takeover


44 posted on 04/15/2010 4:39:54 AM PDT by stephenjohnbanker (Support our troops....and vote out the RINOS!)
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To: NTHockey
>>>BTW, bad link. It comes up “Page not found”.

Try this one.

http://seekingalpha.com/article/120220-kanjorski-and-the-money-market-funds-the-facts
45 posted on 04/15/2010 5:19:41 AM PDT by NC28203
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To: Secret Agent Man
We can’t have a private group doing this and that in the billions and trillions with our money and be told we can’t know what they’re doing with it.

thing is, technically, it's their money, not ours. But I agree, it's way past time for them to come out of the shadows. I think if Americans really understood how bad the bankers are screwing us, they would revolt.

46 posted on 04/15/2010 5:45:33 PM PDT by RC one (WHAT!!!!)
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To: CodeToad

THE U.S. FEDERAL RESERVE BALANCE SHEET EXPANDS DRAMATICALLY
http://jsmineset.com/2010/04/17/market-commentary-from-monty-guild-59/

Our friend, Larry Jeddeloh of The Institutional Strategist, in his Market Intelligence Report of April 14, 2010 brought an important point to our attention. He points out a large increase of $421 billion in the Federal Reserve’s balance sheet in the same week that the Greek Bailout took place.

The bailout for Greece was only $41 billion and the Fed balance sheet expanded by $421 billion in loans. What is going on? Obviously the Fed is lending a lot of money. Was some of it lent abroad? We do not know.

One other explanation is that the loans, the U.S. banks had kept off of their books in offshore SIV’s [Special Investment Vehicles] are coming back onto their banks’ books, and the Fed is lending against them to provide liquidity for U.S. banks. This brings us to a major question that all investors and U.S. taxpayers should consider. How did the accounting profession allow this SIV type of activity, where banks were allowed to keep liabilities off their U.S. books in the first place?

Greece in trouble, now junk status but what happened to that $421.8 billion the Fed loaned out?
http://www.freerepublic.com/focus/news/2501828/posts?page=1


47 posted on 04/27/2010 7:02:28 PM PDT by Arthur Wildfire! March (Weakening McCain strengthens our borders, weakens guest worker aka amnesty)
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To: Arthur Wildfire! March

The fed is no doubt laundering money, to itself and others. The collapse will be huge but I also have no doubt the administration, past and current, wall-streeters, et al., are all set up for big payouts as the world suffers financial collapse.


48 posted on 04/27/2010 8:22:22 PM PDT by CodeToad
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