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Bank Borrowing From Fed Already Exceeded Bailout Total in Last Week
Posted By admin On September 26, 2008 @ 11:30 am In Featured Stories,Steve Watson Articles | Comments Disabled
$700 billion figure means nothing
Friday, Sept 26, 2008
U.S. banks borrowed $188 billion per day on average in the latest week from the Federal Reserve, meaning that the Fed loaned out more money than the Treasury’s proposed bailout in just one week, still barely managing to keep the economy afloat.
Federal Reserve data showed on Thursday the total amount banks borrowed nearly quadrupled the previous record of $47.97 billion per day notched just the week before, Reuters  reports.
$188 billion per day on average over the course of five days means that the total amount borrowed from the Fed in the week ending the 24th September stood at $940 billion – a figure that easily eclipses the proposed $700 billion bailout.
As we have already reported, the $700 billion number was simply pulled out of thin air  by the Treasury.
The Treasury’s fact sheet  about the bailout states, “The Secretary will have the discretion, in consultation with the Chairman of the Federal Reserve, to purchase other assets, as deemed necessary to effectively stabilize financial markets.”
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This gives the government and the Federal Reserve carte blanche to do whatever they want to long as it is done in the name of stabilizing financial markets, they can nationalize any company or industry and use taxpayer money, above and beyond the initial $700 billion, for whatever purpose is deemed necessary, without any oversight. Paulson’s bailout plan is also unreviewable by any court, it will remain in perpetuity.
Paulson’s draft bailout plans says: “The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time.”
As Chris Martenson writes , “This means that $700 billion is NOT the cost of this dangerous legislation, it is only the amount that can be outstanding at any one time. After, say, $100 billion of bad mortgages are disposed of, another $100 billion can be bought. In short, these four little words assure that there is NO LIMIT to the potential size of this bailout. This means that $700 billion is a rolling amount, not a ceiling.”
If the bailout bill passes it is just the beginning of something much larger. $700 billion is a meaningless figure  that will do nothing to shore up the economy . It is not a bailout, it is a giveaway that will allow insiders to purge themselves of bad bets and free to continue where they left off. The real reason for the bill is the unprecedented transfer of power  to the Executive Branch and into the hands of the global corporate elite.
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URL to article: http://www.prisonplanet.com/bank-borrowing-from-fed-already-exceeded-bailout-total-in-last-week.html
URLs in this post:
 Infowars.net: http://www.prisonplanet.com/index.html
 Reuters: http://www.reuters.com/article/ousiv/idUSTRE48O9B920080925
 pulled out of thin air: http://www.infowars.net/articles/September2008/250908Treasury.htm
 fact sheet: http://www.ustreas.gov/press/releases/hp1150.htm
 Chris Martenson writes: http://www.chrismartenson.com/blog/what-latest-bailout-plan-means/5149
 meaningless figure: http://www.prisonplanet.com/no-to-the-paulson-bernanke-derivatives-scam-bailout.html
 nothing to shore up the economy: http://www.prisonplanet.com/the-insanity-of-the-700-billion-giveaway.html
 unprecedented transfer of power: http://infowars.net/articles/September2008/220908Reporter.htm
 Federal Borrowing on Pace to Hit Debt Limit in Less Than Week: http://www.prisonplanet.com/federal-borrowing-on-pace-to-hit-debt-limit-in-less-than-week.html
 CBO: Feds Borrowing $4.8 billion Per Day in FY 2013, So Far: http://www.prisonplanet.com/cbo-feds-borrowing-4-8-billion-per-day-in-fy-2013-so-far.html
 Total Bailout Cost Heads Towards $5 TRILLION: http://www.prisonplanet.com/total-bailout-cost-heads-towards-5-trillion.html
 Number of the Week: $10.2 Trillion in Global Borrowing: http://www.prisonplanet.com/number-of-the-week-10-2-trillion-in-global-borrowing.html
 Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout: http://www.prisonplanet.com/here-we-go-cyprus-to-sell-e400-million-in-gold-about-75-of-its-total-holdings-to-finance-part-of-its-bailout.html
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