Banks snap up Fed cash at record $188 bln per day

[UpInArms]

Source: Reuters

NEW YORK, Sept 25 (Reuters) - U.S. financial institutions borrowed a record $187.75 billion per day on average directly from the Federal Reserve in the latest week, showing the central bank went to extremes to keep the financial system afloat amid the biggest crisis since the Great Depression.

Federal Reserve data showed on Thursday the total amount borrowed nearly quadruples the previous record of $47.97 billion per day notched just the week before and comes as the Bush administration and U.S. lawmakers work on hammering out an agreement on a $700 billion rescue package for the financial system.

"This looks like the balance sheet of a central bank that is keeping the financial system on life support," said Michael Feroli, U.S. economist with JPMorgan in New York.

Primary credit borrowings averaged a new record $39.36 billion per day in the latest week ended Sept. 24 compared with the previous record of $21.60 billion a week ago.

Read more: http://www.reuters.com/article/bondsNews/idUSNYG00131920080925?sp=true

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$188 BILLION a day!

:faint:

[ixion]

1. pigs at the trough

:grr:

[Tandalayo_Scheisskopf]

3. WHat is even worse than that is...

Consumer and small business credit is not being affected by this. It's all going into some closed feedback loop for a very few wealthy concerns and folks.

[amdezurik]

2. so...

they already have gotten almost a trillion dollars that way and it has not helped...yeah toss more cash at 'em, that's the ticket!

[Dr.Phool]

4. Those are just loans. They want a big gift!

When will Congress save the American People from Wall Street.

[amdezurik]

6. hey they have to fund those golden parachutes

...

[Mojorabbit]

5. Well I sure want someone to do something

I am not looking forward to a collapse this frikking week.

[Zorra]

7. I'm actually stunned. I had no clue that this was going on anywhere

near to this extent.
:wow:

[ozymandius]

8. So whatta we do when there's nothing left?

I went to the grocery store today. I wish I didn't have to. The dilution of the dollar supply is clearly evident in the fifty bucks I paid for three days' worth (if we're lucky) of staple items.

[phusion]

10. you got it...

I spent fifty bucks the other day on one bag of groceries...It's painful!

[UpInArms]

16. in 1977, I could buy groceries for a week, including

the best cuts of meat for less than $30 a week

[galileoreloaded]

9. You don't get it. Its over.

get your affairs in order.

[DemReadingDU]

13. Over, like this?

edit: add link
Hoovervilles
http://www.u-s-history.com/pages/h1642.html

[whistle]

11. That $700 billion will disappear in just 3 days at that rate...

...that's faster than a black hole in space :wow:

[Deny and Shred]

12. Holy Hand Grenade, is this inflationary!!

The Federal Gov't stopped printing the M3 (money supply) in March I believe. That means nobody actually knows how many dollars are out there. Once that is re-examined and announced, there will be some serious stagflation.

Get your affairs in order indeed.

[Mnemosyne]

15. "M3 MEASURE OF MONEY DISCONTINUED BY THE FED"

M3 MEASURE OF MONEY
DISCONTINUED BY THE FED
by Bud Conrad
Editor, Casey Research International Speculator
November 22, 2005


The Federal Reserve Board recently announced that it will stop publishing figures for M3 in March of 2006. It is one of the most commonly referenced measures of the U.S. money supply. This is not a momentous event, but it is another sign that the Fed would rather tell us less than tell us more.

As financial markets have changed, the classical measures of the money supply have become less relevant. The US economic system is vastly more complex today than when those measures were developed over half a century ago. With less regulation of the banking system and more substitutes for simple cash, it’s no longer clear what to include in “money.”

http://www.financialsense.com/editorials/conrad/2005/1122.html

[roamer65]

18. Here's what they've done with M3 since the end of reporting.

http://www.shadowstats.com/alternate_data

See the M3 chart and be astounded.

[Mnemosyne]

20. That is indeed astounding. It isn't looking good.

Thanks for the link, roamer! :hi:

I just keep shaking my head. So much deception, so little time.

MIHOP. Why else make M3 unavailable to general public?

[UpInArms]

17. here's a chart for the M3

[alittlelark]

14. This article is required reading for ALL OF CONGRESS .

Holy Freaking Sh*t!:wow: :yoiks: :yoiks:

[OakCliffDem]

19. What business do they think banks are in? Of course they are going to scarf up free money

[superconnected]

21. Sounds like they're taking on more than they can pay back

And these are the institutions that only 1 week ago were calling the defaulting home owners irresponsible deadbeats.