Fed to provide as much as $900B in loans to banks (WHOO HOOOO!!! .. for somebody.)

AP on Yahoo ^ | 10/6/08 | Jeannine aversa - ap

[NormsRevenge]

WASHINGTON – The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe.

The Fed's action is aimed at spurring spooked financial institutions, which are hoarding cash, to lend not only to each other but also to individuals and businesses.

Even as the Fed pledged to take "additional measures as necessary" to battle the worst credit crisis in decades, Wall Street was in a nosedive. The Dow Jones industrials plunged more than 700 points in afternoon trading. Fears spread around the globe about the ability of policymakers in the United States and abroad to turn around the situation.

The lending lockup is a key reason why the U.S. economy is faltering. Unable to borrow money freely or forced to pay a high cost to borrow, employers are cutting jobs and reducing capital investments. Consumers have retrenched.

[nobama08]

What are the terms of these cash loans to banks?

[NormsRevenge]

ALL IN!!!

US Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee on Capitol Hill in Washington in September 2008. US authorities Friday vowed to work swiftly to implement a historic 700-billion dollar economic rescue package, as they were pressed to also reach out quickly to struggling homeowners. (AFP/File/Nicholas Kamm)

[VictoryGal]

FREE MONEY! no, not for you, for these people who pissed it away.

Uh, and we’ll need some money from you. See, you HAVE money, which is unfair to those that threw all theirs away. So cough it up.

[Diogenesis]

First they gave $600 billion to the bankers.

Then they passed the 2008 (Second) Banker’s bailout Bill
for 770 Billion (which everyone knows will go to 7 trillion)

Now they want a third spigot for another $900 Billion
(which will go to 19 trillion dollars).

And it will all be paid for by working American taxpayers
already supporting 26 million criminal illegal aliens.

[ckilmer]

From the National Review

Open this link to see a brilliant diagram of all of ACORN's work, and the Senators and presidential candidates who make it happen. Dodd, Frank, Schumer, and of course Barack Obama are stuck in the swamp of self-dealing, corruption, and politicial machinations, all masquerading as social justice and cheap real estate for the poor, at quite large taxpayer expense. This is a savvy Democrat web site. Follow the link for a really astonishing set of Democratic web sites which compete with each other in their exposition of Obama's perfidies, corruptions, and non-messianic attributes. Remember — former libs are much better at political knife fighting than those whose first instincts are, and remain, conservative.

[CodeToad]

From, uh, where??

[Tzimisce]

Yay! Let’s here it for the seven figure severance packages. :D

[Mediocrates]

It will be paid by the taxpayers - unless the revolution comes first, in which case all bets are off.

[nobama08]

I have been through several recessions and bad economic periods but this one really worries me. It seems like our government is just throwing more good money after bad and things are getting worse world-wide. I don’t see any real leadership. Kinda makes me wish I drank. LOL

[petercooper]

where are your trillion #’s from?

[Califreak]

All In?

More like racking off what’s left.

[sergeantdave]

I just got three blank checks from a major bank asking me to write an amount, pegged at 3.9 interest.

I thought $100 billion would be nice but I don’t hold any packaged mortgage securities.

How long does it take to buy a computer, tap in a bunch of ones and zeros and start up sergeantdave’s Gold Parachute Bank? I pay 20% interest to those who can find their money after the first year.

[sergeantdave]

I just got three blank checks from a major bank asking me to write an amount, pegged at 3.9 interest.

I thought $100 billion would be nice but I don’t hold any packaged mortgage securities.

How long does it take to buy a computer, tap in a bunch of ones and zeros and start up sergeantdave’s Gold Parachute Bank? I pay 20% interest to those who can find their money after the first year.

[supercat]

How long does it take to buy a computer, tap in a bunch of ones and zeros and start up sergeantdave’s Gold Parachute Bank? I pay 20% interest to those who can find their money after the first year.

For enterprises like that to really work, you need to demonstrate that you'll pay people back. You can funnel money out of the bank as you go along, but you won't get any major depositors until there have been at least a couple 'generations' of people who have put in their money and withdrawn 20% more.

Likewise, if you're going to run a lotto scam where you sell tickets for $100ea that will pay off $1,200,000 if the right number appears on the pick-4, you can't sell everyone the same number or people will catch wise real quick to the fact that there usually aren't any winners. Instead, you sell about half of the tickets at random and the other half all for the same number. If you sell 20,000 tickets, then 9,999 times out of 10,000 you'll have about one winnner ($1,200,000) against $2,000,000 of revenue. Nice profit. If the 'magic' number comes up, well, then you leave town.