FED RESERVE Pumps Billions in to Foreign Markets?

Discussion in 'Current Events' started by Care4all, Sep 24, 2008.

  1. Care4all
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    Care4all Warrior Princess Supporting Member

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    so, not only the $700 Billion in to US markets, but hundred plus Billions in to Foreign Markets....and as swaps? what does that mean?

    WHAT in heaven's name is going on here? How can less than 10% of our total mortgages going in to foreclosure be the TRUE root cause of this worldwide mess?

    I thought i got it???

    But i still don't get it? :(

    Anyone know what our total real estate/mortgage obligation is in this country? trying to figure out what $700 billion is of that...?

     
    Last edited: Sep 24, 2008
  2. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    See, the Federal Reserve is actually the cause of the problem.
     
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  3. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    Foreign banks invested in our debt. Since that debt is not solvent, then their invetments are not solvent and their banks will collapse behind ours. This due to the banks foreclosures not paying off because there is no one willing to buy the property that has been foreclosed on. If that property does sell then the bank takes a loss on the transaction and the foreign bank inveted in that debt in the form of bonds, then those bonds are worthless as well. So basically the world economy is propped up by Joe Blow in Iowa making his mortgage payments.

    This is of course as I understand it. I could be completely wrong.
     
  4. Toro
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    Toro Diamond Member

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    This is done to meet demand for dollars in the eurodollar market. Eurodollar LIBOR was trading at 3% over the t-bill today, which is huge. What that means is that banks are afraid to lend to one another. To alleviate fears, the Fed pumps money into the system to lower the interest rate. They provide swaps to meet the demand for dollars abroad.

    I have no problem with this at all.
     
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  5. Care4all
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    Care4all Warrior Princess Supporting Member

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    if the whole world markets are involved, how can $700 billion be anything other than itty bitty bandaid, at most?

    is this gonna be like the Pill Bill where we were told the cost would be $400 billion for 10 yrs but the true cost is in the trillions?

    how can $700 billion do anything at all in a $47 TRILLION DOLLAR ECONOMY World wide? how can we go in to a deep recession and $700 billion will save us from that....?
     
  6. CrimsonWhite
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    CrimsonWhite *****istrator Emeritus Supporting Member

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    What he said. lol
     
  7. editec
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    editec Mr. Forgot-it-All

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    I think you basically got it, CW.

    The house of cards doesn't stop at our borders.

    Every other national bank is linked to our and ours to theirs.
     
  8. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    I still think that this 'crisis' is as genuinely scary as WMD's in Iraq was. This is a power grab by a lame-duck republican administration that sees a regime change in Americas future.

    Tax payers should help everyone who wants to refinance their mortgage on any house that they are living in. What would that entail... loaning out a couple of billion to a wide variety of people, 90% or better who will pay it all back?

    -Joe
     
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  9. editec
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    editec Mr. Forgot-it-All

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    Oh it's truly much much worse, AJ.



    Based on the structure of this proposed bailout, I'm inclined to think you're absolutely right.

    YES!

    And consider that despite the fact that your proposal is the model we used in the last depression, consider that that actually worked our well for the American people, what does it SAY about these people, that they're doing EXACTLY the opposite thing by bailing out the banks who CAUSED the problem to begin with?

    What it says is they STILL think the trickle down theory of economic is the way to go, doesn't it?

    They're going to save the rich at the expense of the workers.

    They're more than willing to let millions of people lose their homes, while paying $700 billion to the bankers so they can keep their mansions.

    If this doesn't show most of us that we've been in an undeclared class war for the last three decades I'm not sure what it will take to wake people up.
     
    Last edited: Sep 25, 2008
  10. Care4all
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    Care4all Warrior Princess Supporting Member

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    the great depression model worked DAMNIT, why are they doing the bail out in this manner????

    Bible prophesy, is being fulfilled, right before our eyes and we don't even recognize it...

    ''A full days work, for a quart of wheat''.....a days work for a loaf of bread ....for the common man, while the greedy (who follow the beastly system)prosper....

    i'm sorry to mention the Bible on this, but this is what its prophesy states will happen...

    well hells bells, we certainly are on our way.... :(
     

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