White Civil Rights » 2008 » October

October 6, 2008

$900 Billion in Loans from the Fed

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Civil Rights

— @ 2:01 am

Subprime crisis is growing by truly massive proportions!! Dow drops another 370 points.

by James Buchanan

Massive inflation is next.

We just had an $800 billion taxpayer bail out of various Wall Street firms last week. Congressmen were getting calls from taxpayers that were running as much as 300-to-1 against the bail out, but they still passed it in a demonstration of governmental arrogance that would shock Marie Antoinette. Now, the Fed is providing an even larger amount, $900 billion in loans to try to fight the ever larger subprime crisis. A few weeks ago, the Fed agreed to loan $200 billion to Fannie Mae and Freddie Mac. In the space of a few weeks, $1.9 TRILLION dollars has been earmarked to deal with a subprime crisis which is quickly turning into the mother of all financial disasters.

Despite the $800 billion bail out, the DOW plunged 370 points today (at one point the market was down about 800 points).

And what caused the subprime crisis? A deliberate decision by our federal government to compel banks to make high risk loans to minorities without down payments, without credit history checks and even without income verification. A New York Post article details the complete insanity that went into the minority subprime loan business.

A recent news article explains “The Federal Reserve will provide as much as $900 billion in cash loans to squeezed banks in an urgent effort Monday to break through a dangerous credit clog that threatens the economy and has unhinged financial markets around the globe. The Fed’s action is aimed at spurring spooked financial institutions, which are hoarding cash, to lend not only to each other but also to individuals and businesses. Even as the Fed pledged to take ‘additional measures as necessary’ to battle the worst credit crisis in decades, Wall Street was in a nosedive… Fears spread around the globe about the ability of policymakers in the United States and abroad to turn around the situation. The lending lockup is a key reason why the U.S. economy is faltering. Unable to borrow money freely or forced to pay a high cost to borrow, employers are cutting jobs and reducing capital investments. Consumers have retrenched.” (more…)

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October 6, 2008

$900 Billion in Loans from the Fed