Re: Fed again takes steps to boost market liquidity
- From: mg <mgkelson@xxxxxxxxx>
- Date: Wed, 12 Mar 2008 17:42:59 -0700 (PDT)
I think I read somewhere that the Fed's rescue attempts were now up to
about 3/4 of a trillion dollars. It's not hard to imagine that they'll
go way beyond that. A few trillion for the banks, a few trillion for
Iraq and the oil companies, a few trillion for rich tax payers. After
awhile it all starts to add up and in the meantime people that work
for a living and people who are retired are seeing their expenses go
up and their income stay the same or go down.
On Mar 11, 10:44 am, Gary <n...@xxxxxxx> wrote:
In a nutshell -- ".....$200 billion of Treasury securities to primary
dealers secured for a term of 28 days...by a pledge of other
securities, including federal agency debt, federal agency
residential-mortgage-backed securities (MBS),...."
"...residential-mortgage-backed securities..."
This is the Fed's way of letting the government take possession of
those bad mortgages that the bankers saddled themselves with in their
never ending attempts to screw the consumer. They are now adding
insult to injury by letting us taxpayers pay for their mistake in this
bail-out. And no mention of putting the perps in prison.
Among out Big Corporation CEO's it's what is called "Socializing the
risk and privatizing the profit". --- gj
===============
http://www.reuters.com/article/topNews/idUSN1155480820080311?feedType...
Fed again takes steps to boost market liquidity .
WASHINGTON (Reuters) - The U.S. Federal Reserve said on Tuesday that
with pressure mounting again in financial markets, it was expanding a
securities lending program and will accept a broader range of
securities as collateral.
"Under this new Term Securities Lending Facility (TSLF), the Federal
Reserve will lend up to $200 billion of Treasury securities to primary
dealers secured for a term of 28 days...by a pledge of other
securities, including federal agency debt, federal agency
residential-mortgage-backed securities (MBS), and non-agency
AAA/Aaa-rated private-label residential MBS," the Fed said in a
statement.
The U.S. central bank said the purpose of its latest action was to
"promote liquidity in the financing markets for Treasury and other
collateral and thus to foster the function of financial markets more
generally."
The new lending facility will operate through weekly auctions that
will start on March 27, the Fed said. It said it still was consulting
primary dealers regarding the specific design of an auction.
The Fed said it was cooperating with other central banks, including
the Bank of Canada, Bank of England, European Central Bank and the
Swiss National Bank on steps to deal with pressures in global
financial markets.
It announced that its policy-setting Federal Open Market Committee has
authorized increases in existing swap lines with the European Central
Bank and the Swiss National Bank.
.
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