The Fed Continues its Mad Ways

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It seems that Ben Bernanke wants to be THE Banker of Wall Street. Or, should I say Bankster of Wall Street. Here are some of the Fed’s most recent actions:

The Fed released a report Friday saying commercial banks averaged $93.6 billion in daily borrowing for the week ending Wednesday. That was up from an average of $91.6 billion for the week ending Nov. 19.

The report also said investment firms borrowed an average of $52.4 billion from the Fed’s emergency loan program over the week ending Wednesday, up from an average of $50.2 billion the previous week.

The Fed said its net holdings of business loans known as commercial paper over the week ending Wednesday averaged $282.2 billion, an increase of $16.5 billion from the previous week.

The Big Lie about the “credit freeze” still is the fig leaf for the out-of-control Fed lending:

Financial firms are borrowing from the Fed because they are having trouble raising money through normal channels as the financial system endures its worst crisis since the Great Depression.

Banks are hoarding cash rather than making loans out of fear that they won’t be repaid. The Fed and the Treasury have been flooding the financial system with money in hopes that banks can return lending operations to more normal levels.

I hate to be the bearer of bad news to Mr. Bernanke, but this will only make the downturn even worse. These people truly are clueless.

6:17 pm on November 28, 2008