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]
Bump.....
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.
Could become the 58th state.
Ping
I know. See my next post (#19.) A Mars mission is more like it.
Its all a shell gme of play money for the feds we endupfooting the bill
They’re keep the stock market on the rise.
They’re keeping the stock market on the rise.
It’s time to end the Fed
Ain’t gonna happen.
A lot of this money might now be in off shore accounts.
Make that supporting
What in the world?
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?
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.
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.
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”.
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