Federal Reserve announces plan to have taxpayers take a soaking
This morning's NYT announced a plan to let the taxpayers foot the bill for all the onerous debts racked up by the private banking cartel.
Trying to stem the massive hemmorhage going on in the money markets, due in no small part to criminal activity, the private bankers of the Federal Reserve will now allow banks to use residential mortgage backed securities as collateral for the funny money being loaned out by the same private bankers who created this nightmare in the first place.
Since these mortgage backed securities are basically worthless, which is why the banks are having trouble staying afloat, this move by the Fed will allow the banks to shift the burden of responsibilty to the taxpayers, who in turn, will be saddled with paying off another massive crime of corruption, just like when we were stuck with the failed Savings and Loans back in the 1980's.
They've managed to shift part of this burden onto taxpayers and eventually, the whole damn mess will be loaded onto our backs.
Guess one could take solace in the fact that the money we'll be using to pay off this fraudulent scheme is and will continue to be basically worthless.
Recall stories about how Germans, back after the end of WW I, saw their money inflated to the point that it took a wheelbarrow full of Deutschmarks to buy a loaf of bread?
Get ready to experience that in real time.
Fed Moves Again to Ease Credit Crunch
WASHINGTON (AP) -- Trying to pump more cash into a tight credit market, the Federal Reserve and other central banks on Tuesday jointly announced a new $200 billion expansion of its lending program.
The Fed acted in conjunction with the European Central Bank, the Bank of Canada and the Swiss National Bank.
In its announcement, the Fed noted that "G-10 central banks have continued to work together closely and to consult regularly on liquidity pressures in funding markets. Pressures in some of these markets have recently increased again. We all continue to work together and will take appropriate steps to address those liquidity pressures."
A Fed statement released Tuesday said that loans to dealers under the new initiative will be secured for 28 days instead of overnight, as is currently the case, by a pledge of other securities, including federal agency debt and residential mortgage backed securities.
The lending facility "is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally," the Fed said.
The announcement said that securities will be made available through an auction process on a weekly basis beginning March 27.
Source: New York Times
