Reply With QuoteThey obviously know the size of the shyte-storm approaching and they're crapping bricks.
Viva la revolucion?
Fed would grant up to $540B to money market funds
Wonderful.
http://news.yahoo.com/s/ap/20081021/..._credit_crunchWASHINGTON – The Federal Reserve announced Tuesday that it will provide up to $540 billion in financing to bolster the money market mutual fund industry, its latest effort to get credit flowing more freely again.
The Fed's new program, called the Money Market Investor Funding Facility, will be used to support a private-sector initiative designed to provide liquidity, or cash, to money market investors. The Fed plans to back purchases of short-term debt including certificates of deposit and commercial paper that expire in three months or less from money market mutual funds.
The funds are large buyers of commercial paper and CDs, which historically are considered safe investments. However, the credit crisis, which took a turn for the worse last month, has put money market mutual funds under pressure as skittish investors demand withdrawals.
"The short-term debt markets have been under considerable strain in recent weeks as money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests," the Fed explained.
The Fed is tapping its Depression-era emergency powers to create the new program. It will provide financing to a series of five private-sector facilities — each run by JPMorgan Chase. They will buy commercial paper — issued by highly rated financial institutions — and CDs, bank notes and other eligible short-term debt from the funds. Commercial paper is a short-term financing mechanism used by companies for day-to-day operations.
By doing so, the Fed hopes to take pressure off the funds and to improve credit conditions so banks and other financial institutions will be more inclined to lend to each other, and to consumers and businesses.
"Improved money market conditions will enhance the ability of banks and other financial intermediaries to accommodate the credit needs of businesses and households," the Fed said.
The Fed is prepared to provide financing up to $540 billion under the new program, Federal Reserve officials said. Only time will tell how much demand there is. The Fed hopes the new program will give the funds confidence to return to buying commercial paper, CDs and other things.
Money-market mutual funds invest in short-term corporate and government debt that typically carries low risks. The funds are popular places to park cash temporarily but still keep it accessible when needed. They typically earn higher interest than money-market accounts and savings deposits at banks, which are insured by the Federal Deposit Insurance Corp.
Of the total $3.45 trillion held in money-market funds as of Friday, about $858 billion was in so-called "prime" money-market funds — the type that typically invest in commercial paper — according to fund-tracking firm iMoneyNet.
Although a total of nearly $6 billion flowed out of prime funds on Thursday and Friday of last week, the decline was far milder than it had been last month. For example, during the four-week period ended Oct. 3, assets in prime funds dropped by more than $514 billion, or about 25 percent, as investors switched to funds offering more security, such as those investing in government debt.
The Fed's announcement on Tuesday marked its latest effort to break through a credit clog that has hobbled lending and threatens to plunge the country into a deep and painful recession.
For about a month, the Fed has been making billions of dollars worth of loans to money market mutual funds — via banks — to help relieve pressures on the funds. And, in a separate program that launches on Oct. 27, the Fed will buy vast amounts of commercial paper from an array of companies. The flight of money funds and others away from commercial paper has left companies finding it harder and more expensive to raise short-term cash.
So, what does that bring the bailout of corporations to? Are we way past a trillion now? But we yet get another stimulus check!
I would just like to take this time to remind you it is a bipartisan government passing this which means both sides are collectively working to veritably screw the American citizen. Politics aside.
Of course the government could have just bailed out the peoples debt in which the money would have gone straight to the corporations anyway and the government could have collected long term interest and payments from the corporations which would seed the money back in the market with loans and credit and better practice to boot. Instead they bailout the corporations which are largely to blame for horrible lending and over extending practices again and again. Total ****.
They obviously know the size of the shyte-storm approaching and they're crapping bricks.
Viva la revolucion?
Some of these CEO's responsible should have a pipe jammed up their ass, like they have done us in the ass with this mess.
SOG I get around 1.4 Trillion for the bailout thus far.
Looks like Helicopter Ben is flying around dropping bailouts to everybody now, when we have a fiat currency system where the central bank can just print to their hearts content they can do whatever they want, hello devastating depression here we come!
Campaign for Liberty has a chart of the expenditures so far; halfway down the page, http://www.campaignforliberty.com/index.php?blogpage=4
Given the National Debt is around 9 trillion - that money could be better spent.Originally Posted by beNder
Some of these CEO's responsible should have a pipe jammed up their ass, like they have done us in the ass with this mess.
SOG I get around 1.4 Trillion for the bailout thus far.
Oh, and the US had to borrow the 1.4 Trillion. Because, they didnt have it.
the ppl are poor, not companies, corporations and CEO's. the last stimulus did nothing, so maybe we need a bigger/better rebate.
I am ecstatic. Can you feel it?Some of these CEO's responsible should have a pipe jammed up their ass, like they have done us in the ass with this mess.
SOG I get around 1.4 Trillion for the bailout thus far.
A bit of a biased website but if true we would be nearing 2 trillion at the end of this.
Two Trillion. Wow, this will be felt 'round the world.
Unless!
Americans can start sh!tting money.
At what point do we run out of capital "T's" to borrow?
Can someone explain to me why the US dollar remains strong against other currencies that are supported by healthier economies? Are parity values derived from darts thrown at a dart board?
When you get to the Q's for Quadrillion.......total global derivative growth in US dollars exceeded a Quadrillion earlier this year....and added another 140 trillion since then...and even more since the 1.14 Quadrillion figure was published.
I'm wondering if the US and it's G7/8/20 buddies will pull together and declare all of these toxic derivatives(a far smaller figure than the 1.14 quadrillion, but still astronomically enormous figure in the high teens, low hundreds of trillions) contracts VOID.
There will be plenty more bailouts.....they haven't gotten to pensions yet....and that is going to be HUGE
Flagg, there is a certain economics professor at the University of Western Sydney, did you study under him?
yay... I am so excited by the complete and utter ineptitude of our government.
Congress is at a whopping 11%, which drops to 0% if you figure in only the people that say they are doing a good or better than good job... otherwise it's 11% saying they are doing an average job.... that is pathetic..
I think the US Dollar remains somewhat intact because we are incredibly large, produce a megaton of cash in our economy every year and are still front and center when it comes to corporations selling products and driving competition. For a much stronger shift to take place a lot of that would have to change.Can someone explain to me why the US dollar remains strong against other currencies that are supported by healthier economies? Are parity values derived from darts thrown at a dart board?
My friend once explained to me that monetary values are determined through perception of people, economy and leadership when we left the gold standard. In other words what the world thinks about you determines what you are to a substantial extent.
You got a link for that? Not doubting you, just having trouble following the exact concept. Like 11% approval rating? And by who? That's pretty low.
To me, Keen comes across as more of a media whore than an economist.Flagg, there is a certain economics professor at the University of Western Sydney, did you study under him?
Some of his projections have been "sexed up" to make them more media friendly.....ie doomy/gloomy....so what's his reality? What he shares to satiate media interview demands? Or something less palatable? Or something more boring?
Keen is either reactive, or being a media whore as he is trying to sell his house NOW......if he was a half decent economist he would have sold and leased back, at a crazy low cap rate/yield, 12-18 months ago...he did not proactively eat his own cooking
To me, his street cred is dropping.
My personal opinions/projections I have been sharing in bits and pieces here(publically and privately) as well as elsewhere.
Some projections I'm comfortable discussing publically, others not so much.
It doesn't take a rocket scientist to figger out that the economic mess we are sinking into will DIRECTLY and SIGNIFICANTLY alter the geopolitical and transnational security landscape.
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