noworldsystem.com


U.S. Taxpayers Paying To Bail Out Foreign Banks

U.S. Taxpayers Paying To Bail Out Foreign Banks

George Washington’s Blog
September 21, 2008

We all know that the Fed is trying to stick the American taxpayers with trillions of dollars in debt (direct or through inflation) to bail out the Wall Street robber barons.

But did you know that they are also trying to get you to bail out foreign gamblers?

An article in the Telegraph states:

“The Fed has also just offered another $125bn of liquidity to banks outside the US that are desperate for dollars and can’t access America’s frozen credit markets”

Another” $125 billion? How much has the Fed already given to foreign banks?

Why are American taxpayers who are already drowning in debt due to U.S. gamblers also being asked to also bail out foreign speculators?

This isn’t a pro-America anti-everyone-else post. If I lived in England, or Canada or Japan, I would resent being asked to bail out America, too.

 

Central Banks Offer Extra Funds to Calm Money Markets

Bloomberg
September 18, 2008

The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the aftermath of the 1929 Wall Street crash.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion “to address the continued elevated pressures in U.S. dollar short-term funding markets.’’ The Bank of England, the Bank of Canada and the Swiss National Bank also participated. Several of them lent funds in their own currencies as well with the Fed adding a record $105 billion in temporary reserves.

Policy makers have struggled to revive confidence in markets this week as investors stockpiled money on concern more financial institutions would fail after the bankruptcy of Lehman Brothers Holdings Inc. and the U.S. government bailout of American International Group Inc. The cost to hedge against losses on U.S. government debt climbed to a record yesterday.

“There’s a complete lack of faith in the markets,’’ said Jim O’Neill, chief economist at Goldman Sachs Group Inc. in London. “There’s a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.’

Paulson: Foreign banks can use U.S. rescue plan
http://news.yahoo.com/s/nm/20080921/bs_nm/financial_bailout_paulson_dc

Bailout Eligibility Expanded to Foreign Institutions
http://calculatedrisk.blogspot.com/..oreign.html

 



Fed Injects $200 Billion into Big Banks

Fed pumps up liquidity in funding markets to ease credit crunch

AP
March 11, 2008

Fed Announces Further Steps to Ease Credit Crunch WASHINGTON (AP) — The Federal Reserve on Tuesday ramped up efforts to provide more relief to squeezed financial institutions, a coordinated action with other central banks aimed at easing a global credit crises that threatens to push the U.S. economy into its first recession since 2001.

The Fed said it will make up to $200 billion in Treasury securities available to big Wall Street investment houses and banks. The new action is designed to ensure that there is an ample supply of Treasury securities. With strains in financial markets, demand has grown for Treasury securities, considered the safest investment in the world because they are backed by the U.S. government.

On Wall Street, the Fed’s action propelled stocks upward. The Dow Jones industrials jumped more than 250 points in morning trading.

The move comes as banks and other financial institutions face cash crunches.

“Pressures in some of these markets have recently increased again,” the Fed said in a statement. “We all continue to work together and will take appropriate steps to address those liquidity pressures.” The other banks involved are the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank.

The Fed announced the creation of a new tool, called the Term Securities Lending Facility (TSLF), geared to provide primary dealers — big Wall Street investment firms and banks that trade directly with the Fed — with 28-day loans of Treasury securities, rather than overnight loans. They would pledge other securities — including federal agency residential-mortgage-backed securities, such as those of mortgage giants Fannnie Mae and Freddie Mac — as collateral for the loans of Treasury securities.

“This will not turn the economy around or fix all the problems in the markets but it should reduce the liquidity issue, at least for now,” said Ian Shepherdson, chief economist at High Frequency Economics. The odds of a deep, three-quarters of a percentage point cut in the Fed’s key interest rate next Tuesday have dropped sharply as the Fed’s new relief seemed to calm market turmoil, he said.

Read Full Article Here

Dow Climbs 416.66 for Its Biggest Gain in Over 5 Years
http://www.nytimes.com/2008/03/11/b..ef=slogin&oref=slogin

Global central bank liquidity injection no long term cure for dollar
http://www.reuters.com/article/topNews/idUSN1160659020080311

Fed gives shot in arm, but recession looms
http://www.reuters.com/article/topNew..0311?virtualBrandChannel=10155

Billionaire Investor Forsees Bank Failures
http://biz.yahoo.com/cnbc/080310/23557115.html