The Big Money Spigot Despite the mainstream media’s intense focus on Trump and the impending impeachment process, the Fed continues to send $690 billion a week to Wall Street. Either the media and the Federal Reserve are working together to keep this information from getting out to the general public, they are too focused on Trump and international affairs, or they could just be too blind to see what’s really going on with the economy.
Securities trading firms on Wall Street currently receive $120 billion in daily loans from the New York Fed. Before they were simply crediting $75 Billion per day. However, they have increased it by $45 billion per day as of October 24 this year. And, unless they are forced to stop or the US economy as a whole collapses, will continue to lend these Securities firms that amount each day.
It is very fascinating to take note of that these Money Road Firms are getting these advances being constantly being turned over. Thus, in essence, they are loans that last forever. Ironically, this was exactly what transpired during the Financial Crisis that lasted from 2007 to 2010. Some Money Road firms around then {let’s call them what they really are Money Road Casinos} got separately more than $2 trillion in combined credits that were turned over for over two years. These loans are made today without Congress or the American public’s permission or even knowledge, as they were in 2007. Citicorp, a bank, received Fed loans totaling over $2.5 trillion with interest rates below 1%. This at a time when it was bankrupt and unable to obtain loans from the public market.
This most recent news from the Fed follows it’s October eleventh declaration that it is sending off a program to purchase up $60 billion a month in US Depository bills for the following 18 months. All that really matters is this: The New York Fed’s actions are unprecedented in American history. In any case, there is no notice of this on any first page of any paper. In fact, there has been no public announcement of a crisis on Wall Street. Congress has not held a single hearing to discuss these massive loans or Treasury buybacks. These loans have not been authorized by any elected official. Even though no officially elected official has been contacted or authorized by the Fed, the New York Fed is still employing highly dubious strategies that could be considered illegal today, just as it was doing in 2007.
One more significant place of concern is the way that these advances are not being proposed to business banks which by the way could re-credit the cash to invigorate the US economy. As a matter of fact these credits are going to the New York Took care of’s essential sellers which are stock and security exchanging houses on Money Road who by the manner in which consider mutual funds as a real part of their biggest borrowers. Foreign banks have branches in many of the primary dealers. These loans are issued by the Fed at interest rates of 2%. These loan fees these organizations get focuses to the another serious issue. The Fed is playing favorites and has no interest in boosting the US economy in the slightest. Interest rates offered to these managers of hedge funds are significantly lower than those offered by the open market.
It is these equivalent unfamiliar banks are counter gatherings to uber US banks subordinate exchanges. This all raises the idea that this is simply one more bailout of Money Road’s subordinates wreck that happened in 2008. The 2010 Dodd-Frank financial reform legislation was intended to curb exactly this kind of misconduct by the New York Fed. Despite this, the Fed is completely ignoring the fact that the Dodd-Frank legislation requires Congress to be informed of the destinations of all of this money. All the more critically to bring in certain that no cash is going to bombing monetary organizations like Citicorp. This brings up yet another significant issue that is strikingly comparable to what led to the 2008 financial crisis.
In accordance with its brand-new loan program, the New York Fed recently distributed more than $134 billion to Wall Street. The fact that the $45 billion in 14-day loans were oversubscribed by more than $17 billion indicates that Wall Street’s demand for liquidity is growing and will not decrease. In 2008, both the mainstream media and Congress failed in their duties, and they are failing the American public once more. The harsh reality of what Wall Street’s avarice is doing to the economy of the United States might finally dawn on the American public during the upcoming presidential election.