Feds Borro​wing $94 Billi​on Daily​ To Bankr​upt YOU!

[Mrs. Sharon B. Hodge]

Feds Borro​wing $94 Billi​on Daily​ To Bankr​upt YOU!




Okay, how many of you out there are still holding onto your bank accounts? Just curious, drop a comment, share some info... HOW MANY OF YOU STILL BELIEVE US IS GOING TO RIDE OUT THIS DELIBERATE WEALTH DESTRUCTION THAT WILL BANKRUPT ALL YOU MIDDLE CLASS AMERICANS! DOLLAR WILL BE WORTHLESS AND YOU WILL BE TRAMPLING EACH OTHER AT THE NEAREST WALMART, COMING SOON!

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Fed's emergency loan program increases activity
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Associated Press
By MARTIN CRUTSINGER

Nov 28, 2008

WASHINGTON (AP) — The Federal Reserve boosted its lending to commercial banks and investment firms over the past week, indicating that a severe credit crisis was still squeezing the financial system

The Fed released a report Friday saying commercial banks averaged $93.6 billion in daily borrowing for the week ending Wednesday. That was up from an average of $91.6 billion for the week ending Nov.
19

The report also said investment firms borrowed an average of $52.4 billion from the Fed's emergency loan program over the week ending Wednesday, up from an average of $50.
2 billion the previous week

The Fed said its net holdings of business loans known as commercial paper over the week ending Wednesday averaged $282.2 billion, an increase of $16.
5 billion from the previous week

Financial firms are borrowing from the Fed because they are having trouble raising money through normal channels as the financial system endures its worst crisis since the Great Depression

Banks are hoarding cash rather than making loans out of fear that they won't be repaid.
The Fed and the Treasury have been flooding the financial system with money in hopes that banks can return lending operations to more normal levels

The central bank on Oct. 27 began buying commercial paper, the short-term debt that companies use to pay everyday expenses.
It was one of a series of moves the Fed has made to try to unfreeze credit markets

The Fed's goal is to raise demand in this area as a way to boost the availability of commercial paper, which has been seriously constrained since the financial crisis hit with force in September

The report said insurance giant American International Group's loan from the Fed averaged $79.6 billion for the week ending Wednesday. That was down by $5.
6 billion from the average the previous week

The reduction reflected a modification of the government's support program for AIG earlier this month. Under that change, Treasury stepped in with a $40 billion purchase of stock in AIG, using money from the government's $700 billion financial system rescue package.
The increased support from Treasury allowed the Fed to reduce slightly the size of its total loans to AIG

The Fed unveiled two new programs Tuesday in a further effort to get consumer credit flowing again

It said it would begin buying mortgage-backed securities from mortgage giants such as Fannie Mae and Freddie Mac.
And it announced a program to lend to financial firms that buy securities backed by various types of consumer debt, from credit cards to auto and student loans

(This version CORRECTS SUBS 10th graf pvs, to correct that $40 billion for AIG is stock purchase, not loan.
Moving on general news and financial services)