December 29, 2007

The Fed just lent out $20 Billion to desperate banks with dubious collateral AND DOESN'T WANT ANYONE TO KNOW WHO THE 93 F*CKED BANKS ARE


This, HP'ers, is sick. And I hope to see the MSM and Congress do their jobs and follow up on it (but I'm not holding my breath).

Bernanke and the Federal Reserve just auctioned off $20,000,000,000 to "cash-strapped" banks, with blatantly overvalued mortgages shockingly serving in many cases as collateral, and they will not disclose who these banks are. There were 93 desperate bidders, and over $60 billion was requested, and there's more of these auctions to come.

Bottom line: The super-secretive puppet-masters at the Fed are pissing money away to banks that are on the verge of failure, and they do NOT want ANYONE to find out who these desperate debtors are.

I think we all know who was likely in the front of the line (hint, he's orange). But if we knew the full list of bidders, I think the financial community would be shocked. And their shareholders panicked.

And that's why the Fed will not let you know.

Here's a reply I got from the Fed after seeking information on this issue, and then an
article on the scam.

Thank you for your recent correspondence in which you requested bid and award data for the Term Auction Facility (TAF) auction.

I regret but the Federal Reserve Board not publish individual bid and award data. Data on aggregate awards broken down by Federal Reserve District will be posted on the H.4.1 statistical release. You can use the following link to access that release: http://www.federalreserve.gov/releases/h41/.

I hope this information is helpful.

Sincerely,

JPD Board Staff


________________

WASHINGTON - Cash-strapped banks took the Federal Reserve up on its offer of $20 billion in short-term loans to help them overcome credit problems, but the interest rate wasn't as low as some had hoped.

The central bank said Wednesday that it had received bids for $61.6 billion worth of loans, more than three times the amount that was made available.

41 comments:

Wolf_in_sheepskin said...

At what point does all this money creation end? the M3 must be vertical at this point.

Anonymous said...

"I think you can classify what we are seeing in the housing market as a crash," said Mark Zandi, chief economist at Moody's Economy.com. "Sales and home prices are in a free fall. The downturn is intensifying."

Frank@Scottsdale-Sucks.com said...

This is the most important post today on this site, and zero comments?

No wonder we elect idiots and our nation is f*cked.

Anonymous said...

if they told you who they were you would know who to short.

FlyingMonkeyWarrior said...

Come on Keith. These Banks NEED the money cuz Bush FROZE the FB's teaser rates before the resets in 2008 and beyond.
That loss has to be made up SOMEWHERE. Gezz Keith.

shtove said...

When the Bank of England does this kind of thing the names are leaked! I think Mervyn King said he can't trust his own administration to keep secrets.

The ECB seems to keep a tight lid on its affairs, which may be the principal reason UK banks have been rumoured to be turning up so often in Frankfurt with their begging bowls.

Anyway, is it necessary to know the individual names? Surely the overall picture is enough to shock any investor.

Princess Mononoke said...

Yeah Ben keep using that bucket for bailing out the water of this sinking ship!!!

My gosh! Where does it end?!?! How about some corporate responsibility for their absurd investing decisions! Let them all bite the bullet Ben...

Coke adds life said...

Are these jokers subject to FOIA? I smell money in the bank (via puts) if we can get the list.

As the suckers footing the bill in the end, we have an absolute right to know the identies of those we are lending money to. NOW!

Coke Out.

Anonymous said...


if they told you who they were you would know who to short.


You should already know who to short.

CFC
WM
C
MER
BSC
MS
BKUNA

That's a short list of stocks to short

Anonymous said...

To get the information use the FoIA and go at it with the help of a group like calaware.org or cfac.org .

Or get a reporter from an independent media outlet to use the FoIA. Try Christian Science Monitor, one of the best independent media outlets left in America.

B said...

When countrywide stars offering 6% on their CDs, we'll know the end is near(er).

They went from 5.3 to 5.5 the other day on some blog ads I saw.

B

Anonymous said...

String 'em up and HANG them all !

Anonymous said...

if they told you who they were you would know who to short.

==============
you would also know where not to keep your money...

YES, it might be FDIC insured... BUT IF YOUR BANK FAILS, you might get upto $100K back at the rate of $100/month with no interest.

Got Gold?

Anonymous said...

if they told you who they were you would know who to short.

==============
you would also know where not to keep your money...

YES, it might be FDIC insured... BUT IF YOUR BANK FAILS, you might get upto $100K back at the rate of $100/month with no interest.

Got Gold?

sk said...

Well done Keith. You know, it might be worthwhile making a big fuss about this. Like - "on what authority do you keep it secret?" and "I'm gonna tell your mama ( Congress reps and Senators ).

I kinda just accept that they won't tell and work around it in as many ways as possible. Confronting this sounds like a good idea.

-K

Anonymous said...

I guess you could classify these as subprime loans. Haven't we learned ANYTHING?

What too do? said...

if they told you who they were you would know who to short.

-----------------------------------
Or who stock holders, savers and account holders should bail from.

Anonymous said...

So does the FED actually ever lose money? What if these banks implode and the collateral is worthless?

Does the FED actually declare a "loss"??

Is the only impact of this inflation vs. an actual taxpayer funded bailout? Congress didn't allocate $20 billion. Bush didn't approve a bill giving the FED $20 billion...

How does this work??

Edgar said...

This is a diversion, FCBs and the FHLB are doing the heavy lifting.

Anonymous said...

Anonymous said...

if they told you who they were you would know who to short.

December 29, 2007 10:47 PM<<<

correct......ony goldman sachs gets that info...

Anonymous said...

Blogger Frank@Scottsdale-Sucks.com said...

This is the most important post today on this site, and zero comments?

No wonder we elect idiots and our nation is f*cked.

December 29, 2007 10:17 PM<<<

well frank, what do you want anyone to say? what can we say? this is par for the course for this bunch. the high places must be brought down and burned and those who have done these evil things must be killed.....does that sound like homegrown terrorism? nope, that is called justice derived from homegrown rebellion....

Anonymous said...

and "I'm gonna tell your mama ( Congress reps and Senators ).
--

the big problem is that the pol are on the take. They won't tell you.

Princess Mononoke said...

You know I was just thinking... that nobody is taking any responsibility whatsoever! It feels like a MADHOUSE of sorts?!?!

*Government? Fed & Local with fiscal policy and exuburant spending.
*The Fed? monetary policy? Banking regulations? on auto-pilot printing press!
*Corporations? Local and Worldwide
*Social? Community? Family? ETC!

Princess Mononoke said...

If I had NOT learned about responsibility early on and believed in it...

I would literally being saying what the f*ck, everyone else is doing it why can't I?????

I grew up learning that robbing a bank was a BAD thing... so why is it okay for Ben, the banks, et al. to continue robbing the American people???

Channa said...

Dear Keith,
here is link for some Fed lending

http://www.nytimes.com/2007/12/28/business/28bank.html?_r=3&partner=MYWAY&pagewanted=print&oref=slogin&oref=slogin&oref=slogin

LauraVella said...

Anon said:"if they told you who they were you would know who to short."



That's true. Personally, I think all of them are in some sort of trouble. How could they not be?

How many instutions offer "direct access" to a equity line of credit?

Recently, when I went to use my ATM at USBANK I noticed the menu choices. Funny thing happened...

I never pay attention because I automatically choose the checking account selection like a zombie...

Recently, instead of being on automatic pilot, something caught my attention, that forced me to slow me down, and to actually for once, read what other services/choices USBANK offered from the ATM menu...

SHOCKING, is all I can say. The other two choices for direct account activities were the selections of 1) Access one's equity line of credit, or 2) Credit card cash withdrawal.

I really can't say if all bank ATMs offer immediate equity cash or not, because I only have US Bank checking, however, If these choices arent abuse-I don't know what is.

How can banks make it so easy to get cash LIKE A ZOMBIE from any ATM on an equity line of credit against a house???

Check out your on bank and find out if they offer this feature, if they do, then I'd short them for sure.

LauraVella said...

Anon said:" So does the FED actually ever lose money? What if these banks implode and the collateral is worthless? "


IMO, The FEDS loose money all the time. I'm guessing, the FED doesnt have to write off, balance or declare losses because they print money out of thin air ,without anything to back up it's value. The fed in general is backing the dollar, and Nixon took the USA off the gold standard back in 1972...

If a bank would fail, I assume its colateral would have to be re-evaluated, and sold for whatever they could get for it at the time. All hard assets would be sold to the highest bidder. All deposits are insured.

Anonymous said...

You should already know who to short.

CFC
WM
C
MER
BSC
MS
BKUNA

That's a short list of stocks to short

----------

Not so. I saw a man on CNBC talk and he said financials are poised for a big rebound.

guy n. cognito said...

Federal Reserve Board FOIA info:

http://www.federalreserve.gov/generalinfo/foia/request.cfm

file away, brother!

Anonymous said...

You can't use the FOIA on the Fed because it is not a government entity.

All of this corporate socialism for the homebuilders and bankers was created by FDR. He also created other ponzi schemes like Social inSecurity and Mediscare that will collapse in the next 20 years. It's time to get rid of Fannie/Freddie/FHA/FHLB and the rest of the government cheese programs.

Anonymous said...

LONG LIVE COMMUNISM

LONG LIVE RON PAUL

LONG LIVE HP

What too do? said...

In "normal times" when the government prints money, how does it get into circulation? Fed payrolls, Social Security, Medicare???

$hitstorm2008 said...

Anonymous said...

Not so. I saw a man on CNBC talk and he said financials are poised for a big rebound.

Hopefully that was sarcasm.
Yeah. I saw quite a few men and women on CNBC push tech stocks late in 2000 too.

SKF is a good ETF with lots of room left to run. Double inverse short of the DOW financials. BOOYAHH

Oh yeah financial bottom was Sept, then October, then November, then.. you get the idea. Bank failures and FDIC forced mergers are going to happen.

Anonymous said...

MY QUALITY BANK STOCK SHARES, HELD THRU MERGER AND BUY OUTS BY/WITH QUALITY BANKS ARE 30 PERCENT BELOW WHAT I PAID 8 YEARS BACK....BUT IF BOUGHT IN 1982 AND HELD UNTIL 2000 MADE ONE DOLLAR A YEAR FOR EVERY DOLLAR SPENT EVERY YEAR....

Anonymous said...

add this regional to your short list:


CACB


cracker ass cracker broke cascade bancorp

Princess Mononoke said...

Anonymous said...
>>>>All of this corporate socialism for the homebuilders and bankers was created by FDR.
December 30, 2007 4:44 PM
==============

FDR created those programs to help America get out of poverty! These programs were MEANT to be a temporary solution until WE got back on our feet.

But as always America became dependent and has been using these programs as a crutch! That's NOT progress...

Anonymous said...

In 2005 I bought a 1700 hundred square foot house for 600K because I saw prices go straight up (about 20% a year from 2000). I bought into the hype and I was fearful that I would be priced out of the market for good so I jumped in. Now, everyone knows that I would be lucky if I got 350K for a house. In my neighborhood, some folks are actually trying to sell their houses for that sort of a price and people who owned the property for a long time and own it outright are selling it for about 300K. So I am fucked. How can I walk away from my obligation? If I walk away, how can I do it legally so I can cover my ass?

Anonymous said...

All he is doing is forcing long term rates to go higher! Nail the housing industry a little more Ben!

guy n. cognito said...

well, after notifying the FRB that i had written my senator and representative about this i got a standard reply:

Thank you for your recent correspondence to the Federal Reserve Board. We appreciate your willingness to share your views.

Sincerely,

JPD
Board Staff

LovethatBush said...

Anonymous Anonymous said...
All of this corporate socialism for the homebuilders and bankers was created by FDR. He also created other ponzi schemes like Social inSecurity and Mediscare that will collapse in the next 20 years. It's time to get rid of Fannie/Freddie/FHA/FHLB and the rest of the government cheese programs.
December 30, 2007 4:44 PM
==================================
Why do all the Conservative Libtards (Libertarian Retards) blame FDR for what the Corporations are doing? America is run by the corporations, for the corporations. What is so hard to understand about that?????

Anonymous said...

Guys, the Fed doesn't create money. All they can do is create the condition for banks to lend money to each other.

If the Fed created money, the cost of servicing the national debt would increase by exactly the amount they printed.

They have not changed the liquidity or the monetary supply since March - they didn't roll over a TOMO and so the $20B they "freed up" was essentially a bank loan not renewed.

Same thing with the ECB's $700B earlier.

Money was *not* created in either case.