Does The Bernank Have Another Ace Up His Sleeve?

[Seraphim]

Are you kidding me? Do you not hear yourself?

Government didn't take the loan...A bank the Government has a huge stake in took the loan...SAME THING.

Fuck me sideways - how do you function in the real world?

The Libyan government didn't borrow money from the Fed. A Libyan bank did. It was partially owned by the Libyan government (they had a 29% stake in the bank). That bank's largest outstanding loan was $1.2 billion. Such loans were overnight- one day or maybe a couple of days. Each day you kept it was considered a new loan amount- even if the amount you had out did not change so if you had say $1000 out for 20 days, that counts as $20,000 in loans even though you only really kept out $1000. http://www.bloomberg.com/news/2011-...ew-at-least-5-billion-from-fed-in-crisis.html During this period, the bank was allowed to operate in the US but was banned from conducting any transactions with the Libyan government.

http://www.bloomberg.com/news/2011-...ew-at-least-5-billion-from-fed-in-crisis.html


You can beat one quarter of one percent by simply buying Treasury notes if you want to. Especially if you have billions to work with. If your bank offered you one quarter of a percent for a savings account would you rush out and put all your money into it? Not likely. Not much incentive.

 

[Zippyjuan]

Thank you for sharing your opinion. Perhaps you could point out what is innacurate and provide a link. Thanks.

 

[Seraphim]

It was supposed to bold the portion I was hammering you on.

It's bolded now.

Thank you for sharing your opinion. Perhaps you could point out what is innacurate and provide a link. Thanks.

 

[Zippyjuan]

So what is incorrect about it? The bank which took out the loan is in the United States and the money did not go to Libya or the Libyan government.

 

[Seraphim]

If the loan was to a Bank that is partially or completely owned by the Libyan government, it is a defacto loan to the Libyan governement.

You see, to me, that is SELF EVIDENT.

 

[Zippyjuan]

So if Wells Fargo borrows money then it is really Warren Buffet who is getting that money since he is a shareholder in Wells Fargo? If you own stock in a company and it borrows money- are you personally receiving any portion of that money?

 

[TomtheTinker]

There really isn't anything the Fed can EVER do to stimulate the economy.

not true...they could go plant an apple tree.

 

[Michael P]

He can drop $100 bills from a helicopter

 

[Bossobass]

You can't beat 1/4% by buying 1 year treasuries.

Last 2 years, commercial lending is down 15%/yr and reserves are up 40%/yr.

1/4% seems very little to the trillions-jaded like yourself, but it's 4 billion dollars they steal off me (US Treasury) to give the banks instead as an incentive to sit on an ocean of lending capability.

Please try to get your head out of the Fed member banks arses long enough to give a crumb of that attention to what I said. Small businesses are being starved to death. They have the inventions (20 times more than big business), the ability to create new markets, improve existing ones and the will to pull the trigger, but no capital.

How in the hell does any thinking person believe the Fed/Fed gov megalith is powerless to spur the economy while they vacuum up every cent of capital and hand it out to each other, and in the process, withhold it from the nations largest employer?

Loans to foreign banks (I don't give a puke which one or who owns it or what the terms were) were in the trillions while loans to small business fell to $180 billion. And you don't think there's any wiggle room there?

Bosso

 

[The Gold Standard]

The Fed probably doesn't want the banks to start lending out all of that money they printed because then everyone will see the inflation. Prices will skyrocket once that money gets through the economy, and then Bernanke (and other Keynesians) will have to explain how we have double digit inflation in a recession.