Forum Post: Fed to Give 40 Billion Dollars to Banks... Every Month
Posted 11 years ago on Sept. 14, 2012, 11:54 p.m. EST by TrevorMnemonic
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The Federal Reserve announced it will be giving 40 billion dollars to banks every month... indefinitely.
Actually more specifically the Fed wrote "the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.... The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability"
Why are we doing this?
Why are we loaning banks trillions of dollars at interests rates as low as .01% just so they can loan people money at 5% to 29.9% ??
A people's bank would be nice. Especially considering the money is all FDIC backed in the first place. AKA tax payer dollar backed since it's our tax dollars that pay for the government that supports this system that creates the dollars we use to pay with. A lot of loans are predatory loans getting people trapped in debt because of 29.9% interest rates because they paid 1 day late.
Banks and credit rating agencies hold too much power over our country and our economic destiny. And the federal reserve continues to prop them up. To the point they're "too big to fail."
More logically we could be using monetary policy to be building roads. Railways. Farms. Schools. Hospitals. Etc... things that actually grow a community and create jobs. And we can do that without inflation.
Nothing good comes from poverty.
Extreme welfare for the Banks/Corporations/Elite.
All this, while begrudging the people medical, safe food, clean water, and safe environment.
it's a hand over of power to private hands
The corporate mafia owns your banks, your fed reserve, and your congress.
Start a people's class action against the banksters.
We're doing exactly that in Australia, and it's off to the Supreme court, with more than 170,000 Australians currently paying the legal costs of the court actions. Read on.......
MORE than 170,000 Australian bank customers have been cleared to fight for the return of more than $220 million in bank fees after a High Court victory.
About 38,000 ANZ customers struck a blow for customers from another seven banks involved in Australia's largest yet class action.
ANZ chief executive Phillip Chronican for Australia said the case would be vigorously defended, warning the result could spread beyond banks and affect any business that imposed overdrawn fees.
The High Court on Thursday allowed an appeal against a Federal Court ruling last December that limited what ANZ bank charges could be regarded as penalties.
The High Court unanimously rejected the Federal Court's proposition that penalties or punishments only related to actions that breached a contract, such as late-payment fees.
The ANZ class action will now also include dishonour fees of between $25 and $45 imposed on overdrawn accounts.
Such events might only cost the bank a matter of cents or dollars, meaning bank customers should never have had to pay banks fees that were out of proportion, excessive and extravagant, says law firm Maurice Blackburn, which is representing customers.
It is backed by litigation funder IMF (Australia) Ltd.
The broader class action currently involves 170,100 customers and rising, claiming $223 million from the ANZ, BankSA, Bankwest, Citibank, Commonwealth, NAB, St George and Westpac.
The ruling had significant implications for all of the banks involved, said Maurice Blackburn principal of class actions Andrew Watson.
"We'll be going back to the Federal Court with this decision in hand and arguing the rest of the case about these exception fees, looking to establish that they are penalties void and, therefore, refundable to customers," he told reporters in Melbourne.
"However the bank tries to spin this, it is a huge win for customers."
Read more: http://www.news.com.au/business/breaking-news/high-court-win-for-anz-customers/story-e6frfkur-1226466350350#ixzz26Wwtwq5v
Peoples Party Unite! We Are All Elected! Lets do the job we're paying these corporate agenda public tyrants to do.. They are doing a lousy job..Corporations are not People, No Diplomatic Immunity to hide behind,We can have Real Justice!Make like Iceland People.. Arrest these Bankers,Politicians,and all known accomplices..We have the evidence, I Repeat, No Diplomatic Immunity.. See Iceland..
I've been saying for some time now that the Fed's actions are to artificially support the current level of inflation/prices.
This is counter to basic economics in which low demand places downward pressure on inflation and prices. Deflation in times of low demand is required to keep inflation and prices in sync with wages/demand.
The Fed is retarding the economy on behalf of the investors and saying to hell with the rest of the economy.
Yep.
Rich weren't hurt in recession.
They prosper from our pain. They hedged their bets, even bet against USA.
For profit.
But, do not envy them
Interesting. Can you explain more?
My cousin just tried to tell me the Federal Reserve "is the people's bank" when I had a conversation about this... some people are so blinded by the current system.
The FED has been trying to keep prices artificially inflated while waiting for demand to catch up. Bernanke assumes the government will take action on jobs and that whatever action they take will lead to the higher demand that would justify the current level of prices/inflation. He is protecting investors. This should lead to a criminal indictment because the Fed is not tasked with insuring investor returns nor is it in their mandate. It's market fraud, plain and simple.
I'd support an indictment.
If one of the tasked policies of the federal reserve is maximum employment... where's the maximum employment?
From the Fed themselves - "The maximum level of employment is largely determined by nonmonetary factors that affect the structure and dynamics of the job market. These factors may change over time and may not be directly measurable. As a result, the FOMC does not specify a fixed goal for maximum employment; rather, the FOMC's policy decisions must be informed by its members' assessments of the maximum level of employment, though such assessments are necessarily uncertain and subject to revision. In the FOMC's most recent Summary of Economic Projections, Committee participants' estimates of the longer-run normal rate of unemployment had a central tendency of 5.2 to 6.0 percent, roughly unchanged from about a year ago, but substantially higher than the corresponding interval several years earlier."
I heard a similar report on NPR yesterday.
in recent history our maximum level was 4%
How are they allowed to let it slide to 10% at it's most recent high.
Maybe they should attempt to try using some "monetary factors" instead of "nonmonetary factors"
The Fed's mandate is also to keep inflation up to prevent deflation. In all forms of capitalist economics, deflation is a natural event brought about by low demand. It's a required aspect in order for capitalism to work. If the Fed's mandate is to prevent a needed aspect of capitalism from functioning, then it's no longer capitalism.
Also, keeping inflation up by artificial means is the highest level of price fixing there could be, which is illegal for anyone to engage in.
Top it off with the gap between wages and prices being sustained, you are in fact exacerbation the inequality issue by sacrificing the consumer's financial well being in order to guarantee investor returns.
Where do I sign my support, wholeheartedly.
Dad tells of an uncle who managed bank during depression, who resigned rather than foreclose on families.
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Sure why not? Are any of you surprised by this?