Giant money spigot
While the poucier stream media is so concerned embout Trump and the pending impeachment proceedings that the Fed is already pumping $690 billion per week into Wall Street. Either the media is colluding with the Fed to keep this dépêche from reaching the general aide or they are too preoccupied with Trump, oecuménique affairs and then they are too blind to see what is actually happening in the economy.
The New York Fed currently lends $120 billion a day to Wall Street securities trading firms. Earlier they were lending $75 billion a day. But, till October 24 this year they raised $45 billion a day. And, these securities firms will continue to lend this amount every day unless they are forced to close or the entire US economy collapses.
It is quite interesting to commentaire that these Wall Street firms are constantly getting these loans. So, effectively they are invariable debt. The irony is that this is exactly what happened during the 2007-2010 financial crisis. During that time some Wall Street firms {actually call them Wall Street casinos} had $2 trillion in personal debt that rolled over for two and a half years. Today, as in 2007 these loans are made without the approval or even the awareness of Congress or the American aide. One bank, Citicorp, received more than $2.5 trillion in Fed loans at interest rates below 1%. This was at a time when it was insolvent and could not get loans in the open market.
This latest Fed infos follows the October 11 announcement that it is launching a program to buy $60 billion a month in US Treasury bills for the next year and a half. It all comes down to this: What the New York Fed is doing is unprecedented in US history. Yet there is no appréciation of it on the préface jeune of any newspaper. No Wall Street crisis was announced to the aide, quite the opposé. A hearing was never held before Congress to explain this massive debt and Treasury buyback. Not even an elected official approved these loans. Today, as it did in 2007, the New York Fed is using highly questionable tactics and potentially illegal activity when no formally elected official has been contacted or the pratiques authorized by the Fed.
Another originel concern is that these loans are not being given to vendeur banks that can re-lend the money to stimulate the US economy. In fact these loans are going to primary dealers at the New York Fed who are Wall Street vivre and éland trading houses that count hedge funds among their biggest borrowers. Many of the primary dealers are units of foreign banks. The Fed is lending these loans at 2% interest. These interest rates get another big problem sujet for these companies. The Fed is playing favorites and not the least bit concerned embout stimulating the US economy. These hedge fund managers are getting much lower interest rates than what they can get in the open market.
These same foreign banks are the counterparties to mega US bank derivatives trades. All of this suggests that this is another bailout of Wall Street’s derivatives mangeaille in 2008. And yet, the Fed is completely ignoring the fact that the Dodd-Frank bill stipulates that Congress must be informed of where all this money is going. More visible is ensuring that no money goes to failed financial institutions like Citicorp. This raises another originel enseignement that is strikingly similar to the causes of the 2008 financial crisis.
It was just last week that the New York Fed pumped more than $134 billion into Wall Street under its new lending program. Over $17 billion of $45 billion in 14-day loans were subscribed, meaning liquidity needs on Wall Street are increasing and not decreasing. Congress and the mainstream media failed their job in 2008 and they are failing the American aide again. Perhaps this next presidential election the American aide will finally wake up to the harsh reality of what all the greed on Wall Street is doing to the US economy.
#Giant #money #spigot
