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WTF?! Fed Pledges Exceed $7.4 Trillion to Ease Frozen Credit

bloomberg.com — The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program.

Who dugg this? Made popular Nov 24, 2008

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  • emazur, on 11/24/2008, -12/+616We are *****.
  • emazur, on 11/24/2008, -73/+387I'll copy/paste my comment from the End the Fed protest submission:
    Federal Reserve Roundup Post:

    Senator Bunning: Crisis Caused by the Federal Reserve
    http://www.youtube.com/watch?v=paG-PawqWHM

    Democratic Congressman D. Kucinich: Repeal the Fed, Impeach the Prez:
    http://www.youtube.com/watch?v=BcVjPo0luBs&feature ...

    Nevada GOP platform: "We support the repeal of the Federal Reserve Act":
    http://www.nevadagop.org/About/Default.aspx?Sectio ...

    Nader VP Matt Gonzalez says abolish the fed:
    http://www.vanityfair.com/online/politics/2008/10/ ...

    Idaho GOP wants to abolish Federal Reserve:
    http://redstaterebels.typepad.com/redstaterebelsne ...

    Steve Forbes calls for drastic reduction of Fed:
    http://digg.com/business_finance/Steve_Forbes_call ...

    Former Georgia congressman and 2008 Libertarian Presidential Candidate Bob Barr calls to end the Fed:
    http://libertymaven.com/2008/05/31/bob-barr-soundi ...

    Investor Jim Rogers call for end to Fed:
    http://www.youtube.com/watch?v=AwIncF3yrpQ

    Peter Schiff blames the Fed on economic crisis:
    http://www.youtube.com/watch?v=Je0jARsDbjw

    A phone call to the Fed:
    http://digg.com/business_finance/A_Phone_Call_To_T ...

    Federal Reserve spokesman speaks out:
    http://digg.com/business_finance/Meet_the_Federal_ ...

    Fractional Reserve Banking versus Ayn Rand's Ethics:
    http://www.youtube.com/watch?v=OWnhX2koVEc

    Greenspan in 1966 blames the Fed's mismanaged policies for Great Depression:
    http://www.321gold.com/fed/greenspan/1966.html

    Whether or not you believe in any conspiracy theories, keep in mind that Federal Reserve policies reward the politician by allowing him to "give" his constituents more without increasing taxes, thus increasing his chance for reelection, but punish both the saver and the investor. Printing fiat currency causes inflation and savers are hit the hardest by this. Those who try to beat inflation become investors - they may try their hand in the stock market, but look how the Federal Reserve lending practices caused the price of stock to plummet in the recent economic crisis, nearly wiping out people's life savings. Inflation and mismanaged policies are felt by everyone and are reason enough to oppose the Federal Reserve.
    "‘A government big enough to give you everything you want, is strong enough to take everything you have..."
    -Thomas Jefferson

    For the inevitable naysayers and bury brigade:

    PART I: DID THE FED CAUSE THE SEPTEMBER COLLAPSE OR IS THIS SCAPEGOATING BY PIMPLY FACED YOUTUBE EDUCATED IDIOTS?
    I guess this depends on whether or not you consider Steve Forbes to be a pimply faced youtube educated idiot. If you don't consider him so, why not watch this short 3 minute video clip of Steve Forbes explaining the meltdown:
    http://thesaloon.net/blog/_archives/2008/10/25/394 ...
    Hell I transcribed a few sentences for you that you can use for reference.
    "I think it begins with our own central bank, the Federal Reserve, which 4 years ago created excess liquidity, created excess money, that created global excess liquidity, started the commodities boom and really destructively spilled over into the housing market, where everyone figured "why not let lending standards come down, after all housing prices always go up don't they?" So that started it. The Fed created the conditions for the bubble and everyone participated in it. It wasn't just banks and lenders, new players in the game, Wall Street participated too. You saw the same thing happen all over the world - package these things, spread them all over the place - securitization. So it became a global mania, a global bubble... We had two entities here, Freddy and Fanny... helped fuel this thing - underwrote a trillion dollars worth of less than prime mortgages"
    And I guess it also depends on whether or not you consider Ron Paul to be a pimply faced youtube educated idiot, when he mirrored Forbes thoughts and wrote:
    http://www.lewrockwell.com/paul/paul494.html
    "At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. It is the manipulation of credit, the money supply, and interest rates that caused the various bubbles to form. Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings."
    So is it fair to blame the crisis COMPLETELY on the Fed? No, in fact here's a great little article demonstrating the American people have a part in the crisis by buying oversized houses and SUV's they didn't need:
    http://www.delsquacho.com/blog/wp-content/cache/su ...
    But to be sure, the Fed and the government deserve a lion's share of the burden for dangling the carrot of cheap credit in front of the American consumer. Here is the opinion of Peter Schiff, president of EuroPacific Capital and Ron Paul's economic adviser during his 2008 campaign for the White House:
    http://jglobal.blogspot.com/2008/06/peter-schiff-o ...
    "What few economic leaders have acknowledged is that the Federal Reserve itself is responsible for the real estate and credit bubbles, which are the source of our current troubles. By keeping interest rates too low for too long, the Fed ignited a speculative fever and engendered a disregard for risk management that pushed asset prices above rational levels. Should we blame the private sector for taking advantage of all the cheap credit, or the Federal Reserve for supplying it? If a kindergarten teacher passes out handfuls of Pixie Sticks, and then leaves her classroom unattended for several hours, should we blame the five year olds for the hysteria that ensues?"
    Schiff, coincidentally, was the man who dead on predicted the September '08 meltdown well before it happened:
    http://www.youtube.com/watch?v=MoSwkCog-Ro&feature ...
    but perhaps he too, is a pimply faced youtube educated idiot.

    PART II: UNEDUCATED IDIOTS!!! WHEN THE GREAT DEPRESSION HAPPENED, WE WERE ON THE GOLD STANDARD!!! THE FED IS NOT TO BLAME, AND GOLD IS FLAWED!!! OR IS IT...

    I don't even need to type anything here, if you had just read SOME of Greenspan's essay from 1966 (this was back in the day before he became a ***** who abandoned Ayn Rand's laissez-faire capitalism) you'll see exactly how the establishment of the Fed created a devastatingly harmful credit based currency in addition to the gold standard which was already in place. Said Greespan:
    "Technically, we remained on the gold standard; individuals were still free to own gold, and gold continued to be used as bank reserves. But now, in addition to gold, credit extended by the Federal Reserve banks ("paper reserves") could serve as legal tender to pay depositors.

    When business in the United States underwent a mild contraction in 1927, the Federal Reserve created more paper reserves in the hope of forestalling any possible bank reserve shortage. More disastrous, however, was the Federal Reserve's attempt to assist Great Britain who had been losing gold to us because the Bank of England refused to allow interest rates to rise when market forces dictated (it was politically unpalatable). The reasoning of the authorities involved was as follows: if the Federal Reserve pumped excessive paper reserves into American banks, interest rates in the United States would fall to a level comparable with those in Great Britain; this would act to stop Britain's gold loss and avoid the political embarrassment of having to raise interest rates. The "Fed" succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world, in the process. The excess credit which the Fed pumped into the economy spilled over into the stock market-triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economies plunged into the Great Depression of the 1930's."

    PART III: I AM A SHEEPLE. I'M STILL NOT CONVINCED ANYTHING IS WRONG, AND THINK THE FEDERAL RESERVE SYSTEM IS JUST FINE AND DANDY

    By supporting the Federal Reserve, you are supporting fiat currency (paper money backed by nothing). Well, actually that's not quite true, it is backed by the government's ability to tax you. It is no coincidence that when the Federal Reserve was established in 1913, that same year the income tax was imposed upon us. Are you fine and dandy with paying the income tax or fine and dandy when paying hefty penalties for misunderstanding a monstrously complicated tax code or when an IRS agent gives you incorrect information that you trusted was correct but results in an audit? If you're confused about what our fiat currency, the US dollar, is backed by, take a look at these 2 items. You wouldn't have to read this if you had bothered reading any of my original links:

    A) SHORT EXPLANATION - A PHONE CALL TO THE FED:
    CALLER - Are Federal Reserve Notes backed by anything?
    MR. SUPINSKI-Yes, by the assets of the Federal Reserve but, primarily by the power of congress to lay tax on the people.
    CALLER - Did you say, by the power to collect taxes is what backs Federal Reserve Notes?
    MR. SUPINSKI - Yes

    B) LONGER EXPLANATION - ALAN GREENSPAN IN 1966:
    "But the process of cure was misdiagnosed as the disease: if shortage of bank reserves was causing a business decline-argued economic interventionists-why not find a way of supplying increased reserves to the banks so they never need be short! If banks can continue to loan money indefinitely-it was claimed-there need never be any slumps in business. And so the Federal Reserve System was organized in 1913. It consisted of twelve regional Federal Reserve banks nominally owned by private bankers, but in fact government sponsored, controlled, and supported. Credit extended by these banks is in practice (though not legally) backed by the taxing power of the federal government."

    PART IV - I DON'T TRUST GREENSPAN OR THE FREE MARKET! HE SAID HIMSELF HE MADE A MISTAKE IN THINKING THE MARKET WOULD CORRECT ITSELF
    I did say there were 2 Greenspans didn't I? You can reasonably trust the Greenspan during his pre-***** years. But during the last 20 to 30 years, he became a ***** who mismanaged the Federal Reserve and instead of directly blaming himself, in a final act of betrayal he blamed his faith in the free market. I don't have time to convince you why his "admission" of a mistake was a complete farce, so why don't you take a look at a few articles on the web and judge for yourself. I'll get you started with a couple:
    http://www.capmag.com/article.asp?ID=5340
    http://www.washingtonpost.com/wp-dyn/content/artic ...

    PART V: OUR "FIAT CURRENCY" DOLLAR IS STRONG! IT WILL NOT COLLAPSE, AND NEITHER WILL OUR ECONOMY UNDER THE FEDERAL RESERVE... RIGHT?
    Those pimply faced, you tube educated internet conspiracy theorists at the BBC don't seem to think so:
    http://news.bbc.co.uk/2/hi/business/7684397.stm
    But surely this guy and his rantings on Fox Business are always wrong:
    http://www.infowars.com/?p=5938
    And this guy we already know will be wrong as usual, right?
    http://www.boom2bust.com/2008/11/21/peter-schiff-t ...

    PART VI OK, MAYBE I'M A LITTLE CONVINCED ABOUT ALL THIS FEDERAL RESERVE CRAZINESS...
    Well first you have to get mad:
    http://digg.com/political_opinion/Turn_Off_Your_TV ...
    And then start doing something about it. Personally, I go for the Ron Paul movement:
    http://www.campaignforliberty.com/
    and the Libertarian Party
    http://www.lp.org/
    but like I said the issue of the Federal Reserve crosses party lines. Whatever action you take, make sure it is not inaction. Now excuse me, I'm not gonna write about this any further, I'm going to take action by participating in a protest. Good luck with whatever you decide to do.
  • inactive, on 11/24/2008, -18/+255"The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago"

    Americans are gonna have to work extra hard next year, because half of everything they produce will be going directly into the pockets of the globalists!
  • kemp34, on 11/24/2008, -4/+225The secret to ending the energy crisis is simply harnessing the power being generated by the founding fathers as they spin in their graves.
  • Mpwns, on 11/24/2008, -7/+209the $100 bill is the new penny.
  • Serinox, on 11/24/2008, -4/+169"I must have misplaced a decimal point.. I always do that. I always mess up some mundane detail"
    -- Michael Bolton from Office Space
  • blinkerbug, on 11/24/2008, -12/+141Now why was it that JFK signed an order shortly before he was assassinated that would have started the process of ending the Federal Reserve? hmmm.. http://www.john-f-kennedy.net/executiveorder11110. ...
  • Acrinimiril, on 11/24/2008, -6/+128$7,400,000,000,000
  • NorthMass, on 11/24/2008, -22/+140THIS IS WHY WE LITERALLY BEGGED YOU ALL TO VOTE FOR RON PAUL, AND NOT MR. CHANGE
  • tremendoustie, on 11/24/2008, -7/+125Translation: A semi-public organization which is owned by banks, and whose leadership is under minimal supervision by the federal government, has decided to use its control of the U.S. monetary system to mug U.S. citizens for over 7 trillion dollars, and give the money to banks. Since U.S. citizens cannot afford this kind of money, they will likely be put into further debt to pay for it -- a burden of over $80,000 per family of four. Of course, this inevitably reduces the solvency of those Americans, and the nation as a whole, but at least those banks will be spared the consequences of their irresponsible and destructive actions.
  • Waiting2awake, on 11/24/2008, -6/+117Ok, so it seems to me that when the American government started getting way off course, the people kinda sorta got angry and asked them to stop. They have only gotten more obvious and insane... So it occurs to me that:

    Asking them hasn't worked
    Calling them hasn't worked
    Writing them hasn't worked
    Emailing them hasn't worked.
    Peaceful protest hasn't worked.

    So what now lads? What do you do when all peaceful solutions have been used up to no avail?
  • Tbyrd073, on 11/24/2008, -6/+111Welcome to Zimbabwe!
  • rpedersen, on 11/24/2008, -7/+105Holy crap!
  • spidur1, on 11/24/2008, -9/+107"Most of the spending programs are run out of the New York Fed, whose president, Timothy Geithner, is said to be President- elect Barack Obama’s choice to be Treasury Secretary."

    Obama for change! Not! I can't believe how clueless the American people are and how the media just refuses to tell the truth. Oh wait, I can believe it. As emazuremazur stated earlier...

    WE'RE *****.
  • thealsir, on 11/24/2008, -1/+86That's like a Burj Dubai of text.
  • inactive, on 11/24/2008, -1/+81The problem is we don't produce anything any more. We buy everything on credit.

    By the way, could you spare a couple of bucks?
  • StingingNettle, on 11/24/2008, -1/+78The credit crisis has already cost more than WW2
  • Waiting2awake, on 11/24/2008, -8/+80Surely THIS is enough for Americans to finally wake up and go after their true enemies....

    Surely by now, there is no doubt who they are is there? No need to be searching deserts this time?
  • NikoK, on 11/24/2008, -3/+71I'm scared even in Canada....
  • cyrusuncc, on 11/24/2008, -9/+77We need Tron Paul!
  • inactive, on 11/24/2008, -9/+74$7.4 Trillion?
  • thecoolestguy, on 11/24/2008, -4/+66The $700 billion pledged by Congress is small potatoes compared to what the unaccountable and unregulated Federal Reserve is doing.
  • wiirdo, on 11/24/2008, -0/+62I'm about to pull out my checkbook and write the government a $7.4 Trillion check. Problem solved.
    No need to thank me.
  • thallium205, on 11/24/2008, -3/+64If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers occupied. The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs. I sincerely believe the banking institutions having the issuing power of money are more dangerous to liberty than standing armies.
    We are completely saddled and bridled, and the bank is so firmly mounted on us that we must go where they ill guide.
    The dominion which the banking institutions have obtained over the minds of our citizens…must be broken, or it will break us.
    Thomas Jefferson (Letter to James Monroe, January 1, 1815).
  • specialK16, on 11/24/2008, -4/+64"Bullets change governments far surer than votes."
  • inactive, on 11/24/2008, -4/+64Oceans 14: The Fed Robs the People.
  • inactive, on 11/24/2008, -14/+69Most of the spending programs are run out of the New York Fed, whose president, Timothy Geithner, is said to be President- elect Barack Obama’s choice to be Treasury Secretary.
    ----
    Welcome to Obamastan!

    The good news: we will all be millionairs and billionairs soon.
    The bad news: well, you know...
  • borez, on 11/24/2008, -2/+55$7.4 trillion, magicked out of thin air. This is gonna turn around and bite America so hard in the ass that I can't even fathom the consequences.

    Utter ***** madness, by obviously insane idiots.
  • pintomp3, on 11/24/2008, -3/+55more socialism for the rich.
  • jeffvvisoft, on 11/24/2008, -1/+53Your comment made my scroll bar explode.
  • Betrayer, on 11/24/2008, -1/+53Someone hit the RESET BUTTON please... this game SUCKS!

    (if the company i owe money too (and the companys they owe money too) goes out of business, do i still owe them money?.. RESET)
  • veriix, on 11/24/2008, -2/+53can I get about three fiddy?
  • Zaxcomp, on 11/24/2008, -4/+54Wow, I actually agreed with Fox News' position. What the ***** has the world come to.
  • Princeamor, on 11/24/2008, -10/+59The whole goal for this is to put us in such deep ***** that we will find the only foreseeable solution is to create a one world currency.
  • ericdano, on 11/24/2008, -6/+51***** that, I'm not paying my Taxes anymore. How about bailing out the TAX PAYER??????
  • inactive, on 11/24/2008, -0/+42This is such a great idea kemp. Its green and its clean. Although it seems that they are harnessing enough power burning up our constitution and civil liberties.
  • Beautyon, on 11/24/2008, -6/+47No, you are not, because:

    http://uk.youtube.com/watch?v=6ZyAd_rJAx4

    "IT'S NOT YOUR MONEY!"
  • inactive, on 11/24/2008, -1/+41My savings is all in American Eagle gold coins or gold coins of smaller size from other countries and in pre-assasination silver coins minted in our country.
    Not only do they keep up with inflation, the federal government can't tax me on the increase in dollar value. Just because their paper is worth les that does not create an event for taxation.
    Try keeping the feds out of your bank savings account and see how much success you have.
  • Waiting2awake, on 11/24/2008, -3/+43coincidence, just a coincidence.. nothing to see here....move along.
  • inactive, on 11/24/2008, -0/+38I have been trying to eat financial services and have found it very meager fare...

    Perhaps if we flayed a couple of Wall Street bankers....
  • nkleffman, on 11/24/2008, -0/+37coincidence theorist!
  • MeatMountain, on 11/24/2008, -11/+48THATS OVER 9000!!!!!!
  • Katalystt, on 11/24/2008, -1/+3750% of your 50% is allready gone i hate to tell you ... lol
  • Beautyon, on 11/24/2008, -2/+37Just one serious question to everyone in this thread:

    Have you converted all your savings into other currencies out of Federal Reserve Notes?

    That is the question you need to be asking EVERYONE that you know, and if you have not done so, WHY NOT?
  • cuecat, on 11/24/2008, -3/+37This is what happens when you have a corrupt political system. We have a 2 party ideological monopoly as a form of government and when you go to the polls, you have to choose between one of the ideologies. And once one of them comes to power, they have a free pass for the next 4 years to further their ideology and to choose policies not on their merits but on ideological grounds. Combine this with promising anything to get elected, even if it means bankrupting the country and taking donations (wink, wink) from groups they will be governing when they come to office.... You end up with an insolvent system.
  • NorthMass, on 11/24/2008, -4/+37My point was that Obama voted for all this bailout *****, and Ron Paul would of tried to stop it. And yes Ron Paul would of sent us into a depression ASAP, BECAUSE WE NEED ONE! Obama's deficit spending is just going to prolong the depression and make it much much WORSE, it is just delaying it.
  • NorthMass, on 11/24/2008, -7/+40Just putting your fingers in you ears and shouting "CHANGE, HOPE, YES WE CAN" won't make the economic crisis go away.
  • cubicledrone, on 11/24/2008, -1/+34In the 50s we built things and we weren't living on credit cards.
  • kemp34, on 11/24/2008, -0/+32But the intense heat being generated from the burning of the Constitution is the primary cause of global warming.
  • BadseedJR, on 11/24/2008, -0/+32Hah! Nobody cares as long as it doesn't affect their own little world. The country could be completely owned by the government and nobody would do a damn thing as long as they could still watch TV and eat fast food.
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