Tuesday, April 8, 2008

Brother Can you spare a dime?

As of the end of the first quarter of 2008, The Federal Reserve made the following transactions to prop up Wall Street.

Lent banks $10.3 billion through the discount window.
Lent banks $100 billion in term auction credit.
Lent securities dealers $76 billion through standard repurchase agreements.
Lent securities dealers $34.4 billion through the discount window.
Lent securities dealers $75 billion of its Treasurys in return for other collateral through its new Term Securities Lending Facility.
Lent up to $36 billion to the European and Swiss central banks

That is a total of 331.7 Billion Dollars in new debt and liabilities on the balance of financial institutions that have no capacity to repay. Can you say crash!
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