Fed Auctions Billions in Securities (Interest rate of 0.33%)

[Robbien]

Source: ap

Big investment houses took the Federal Reserve up on its first-time offer Thursday to let them borrow Treasury securities, the latest effort to ease a painful credit crisis.

The Federal Reserve auctioned $75 billion worth of Treasury securities. Bidders paid an interest rate of 0.330 percent. Demand was high. The Fed received bids of $86.1 billion worth of the securities.

. . .

Big Wall Street investment firms could borrow much-in-demand Treasury securities from the Fed and put up more risky investments, including certain shunned mortgage-backed securities as collateral for the 28-day loans.




Read more: http://ap.google.com/article/ALeqM5jC0Js_XMSCt-GDAijc3qIbjuVZIAD8VLV4D00

---

Borrow money at almost zero percent and put up worthless chopped and diced CDO's as collateral.

And of course the Fed is running this program on our dime charging our treasury at current market rates for their services.

The Fed makes a huge profit. Investment firms make a big profit. All's good.

[Arctic Dave]

1. Ah looting we will go, ah looting will go

hi ho the dairy-o, ah looting we will go.
To be sung to the tune of, The Farmer and the Dell.
Feel free to add your own lines

[Deny and Shred]

4. You threw down the gauntlet Dave. Catchy tune, here goes.

The deficit it grows, the deficit it grows
add a couple more zeroes, and pay the CEOs

Swaps and CDOs , Swaps and CDOs
Worthless junk bought by the FED , Bear Stearns now JP Mo's

A house was just foreclosed, a house was just foreclosed
Thought you'd find the American Dream, now you're completely hosed

[Arctic Dave]

6. You, my friend, are a poet.

:toast:

[Occulus]

11. Somebody should get a kid to sing those three posts

and put it up on YouTube, with relevant facts and figures as the video portion.

No, really. I think it could be devastatingly effective.

Oops- and AdHoc's post as a verse, too.

[AdHocSolver]

10. My rhymes aren't as good as yours, but you inspired me to give it a try.

The money grows on trees, the money grows on trees;
Raid the U.S. Treasury, bring the U.S. to its knees.

We are going to rob the banks, we are going to rob the banks;
The Fed made it possible, let's give it all our thanks.

The jobs we sent abroad, the jobs we sent abroad;
The suckers still haven't figured out, that "free trade" is a fraud.

[depakid]

2. $86.1 billion!

Looting on a scale we haven't seen since the fall of Baghdad.

[NM Independent]

3. Sel Regulating Free Market my fracking ass

If you're going to force everyone else to live by your theories than you should accept the consequences when they fail.

GOD DAMN REPUGNICANS!!!

[Deny and Shred]

5. The 'Run on the Bank' was NOT averted. It's a run on the FED

[Robbien]

8. Well, almost

The Federal Reserve is a privately owned company which is making a bundle off this deal.

The Taxpayer Federal Treasury is the entity upon which the run is being made.

[whistle]

7. Moving the U.S. Federal Government straight into bankruptcy

[khaos]

9. or US citizens into slavery

[UpInArms]

12. when the cops are crooked and no one is policing the police

as in this corrupt administration and its mob goons and cronies has taken this country to its knees.

The people watching the dance of the sugar plum fairies on the nightly teevee snews know that something is wrong but they continue to be distracted by the shiny objects that are waved before their eyes.