The Printing Presses are working overtime. Under Law the Fed Reserve can loan out as much money as they want. It takes an Act of Congress to purchase all the Toxic OTC Derivatives. The valueless junk that the banks want to unload on the American Taxpayer.
The Fed is infusing liquidity into the financial system at a record rate. Inflate, inflate, the only way a fiat monetary system can be kept alive.
From American Banker's website this evening:
Discount Window Borrowing Jumps to $262 Billion
American Banker | Friday, September 26, 2008
By Steven Sloan
WASHINGTON During another turbulent week on Wall Street, lending through the Federal Reserve Board's discount window skyrocketed to $262.3 billion on Wednesday, thanks to new lending programs unveiled during the week.
It was the second record in as many weeks and more than double from the previous high water mark.
The heaviest lending was centered on the primary dealer credit facility, which was established in March to give investment banks access to the discount window. The Fed eased terms on the facility on Sunday when it approved requests from Goldman Sachs and Morgan Stanley to convert to bank holding companies.
The Fed said Goldman and Morgan, the last of the major investment banks, could borrow on the same terms as commercial banks and with the same collateral. In response, lending through the PDCF totalled $105.662 billion on Wednesday, from $59.8 billion a week earlier.
Commercial banks were also very active at the discount window. Loans to banks increased 17.7%, to $39.9 billion, a new record.
Meanwhile, the Fed issued loans to weak banks for the second week in a row. These loans increased 5.6%, to $19 million on Wednesday.
The Fed is infusing liquidity into the financial system at a record rate. Inflate, inflate, the only way a fiat monetary system can be kept alive.
From American Banker's website this evening:
Discount Window Borrowing Jumps to $262 Billion
American Banker | Friday, September 26, 2008
By Steven Sloan
WASHINGTON During another turbulent week on Wall Street, lending through the Federal Reserve Board's discount window skyrocketed to $262.3 billion on Wednesday, thanks to new lending programs unveiled during the week.
It was the second record in as many weeks and more than double from the previous high water mark.
The heaviest lending was centered on the primary dealer credit facility, which was established in March to give investment banks access to the discount window. The Fed eased terms on the facility on Sunday when it approved requests from Goldman Sachs and Morgan Stanley to convert to bank holding companies.
The Fed said Goldman and Morgan, the last of the major investment banks, could borrow on the same terms as commercial banks and with the same collateral. In response, lending through the PDCF totalled $105.662 billion on Wednesday, from $59.8 billion a week earlier.
Commercial banks were also very active at the discount window. Loans to banks increased 17.7%, to $39.9 billion, a new record.
Meanwhile, the Fed issued loans to weak banks for the second week in a row. These loans increased 5.6%, to $19 million on Wednesday.
