DRANT #290: SCAMMMMM !!!!!! Dow Up 416; Biggest Gain Since '02

Sorry I have been unable to send DRANTS lately, but we are eyeball deep in actions here in DC this week and next-
BUT-
For anyone who has any doubts about what is being done to us here-
They are taking our money, and giving it to the banks.
The way we pay for this is called INFLATION, and DEVALUATION.
WE are paying for this
Here is a handy lexicon:
"the credit market" = The Banks
"financial institutions" = The Banks
"major investment banks" == well, you know
"seemingly solid financial institutions = The Banks

Now do you know what the Govt is using to back the giveaway ? as collateral for the bailout ?
You won't believe me, but- its the same garbage worthless crap paper that the banks and wall street sold to US and hapless idiots all over the world- its the same pyramid scheme- except this time, its our very own government buying the bogus bullshit pelf, and using OUR MONEY to buy it.
Plus, they are having the Federal Home Loan Mortgage Association
buy up all the mushy mortgages they can, and are raising the loan amounts on which they will make these publicly funded loans - to $750,000!!
In udder woids, they are funding million dollar home purchases, with our bucks.
Miilions of us are losing our homes, being evicted, having our houses repossessed, literaly having our lives FORECLOSED,
and who does the Gummint bail out ?
The BANKS.
With our bucks.
Now tell me again how stupid Bush is.
What idiots these guys are.
This is one of the greatest financial scams ever perpetrated on us and the world.
The banks and their employees in the government have been gorging themselves - insatiably stuffing their gigantic pot bellies and now, when the check arrives, they are handing it to us and our children.
If this is OK with you, and if its OK with your kids, and grandchildren, (I suggest you ask them, please)
then do nothing.
They have relied on this for years, and they are depending on it now.
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Stocks Surge After Fed Lends $200 Billion to Banks
The New York Times

March 11, 2008
Fed Plans to Lend $200 Billion to Banks
By MICHAEL M. GRYNBAUM

Scrambling to ease the strain on the credit market, the Federal Reserve announced a $200 billion program on Tuesday that would allow financial institutions, including the nation’s major investment banks, to borrow ultra-safe Treasury money by using some of their riskiest investments as collateral. Wall Street responded with a rally, with the Dow Jones industrials surging more than 400 points.

This was the central bank’s second effort in a week to unfreeze the nation’s panicky credit markets, where investors have become too frightened to finance even conservative debt offerings, which in turn has caused a cash squeeze at seemingly solid financial institutions.

Stock markets soared after the announcement, fell back in midday trading and then regained momentum in the afternoon. At the close, the Dow industrials were at 12,156.81, a gain of 416.66, or 3.6 percent. It was the biggest one-day point gain for the Dow since July 2002. The Standard & Poor’s 500-stock index was up 3.7 percent, and the Nasdaq composite index gained 4 percent.

The Fed normally lends Treasury securities to banks for just a few hours. Under the new program, money will be lent for 28 days and the central bank will accept nongovernment mortgage-backed securities — the source of the current crisis in the credit markets — as collateral. The Fed will require that the assets, which are linked to soured home loans, have a premium credit rating.

The new program, dubbed the Term Securities Lending Facility, will effectively allow strapped financial institutions to hand over potentially damaged securities to the government in exchange for either cash or easily traded Treasury securities, some of the safest in the market.

“If these institutions are able to extend out more credit as a result of this, it may take more pressure of the housing market and mortgage quality,” said Mark Zandi, chief economist at Moody’s Economy.com.

But Mr. Zandi said he was skeptical that the Fed’s actions would address the root of the current problems in the credit market.

“I don’t think it helps determine the appropriate price for these securities,” he said. “It doesn’t solve the underlying problem of mortgage delinquencies and defaults, which could at some time threaten the Triple-A securities.”

The Fed will lend the Treasuries through weekly auctions that begin March 27. The government will also accept mortgage-backed securities issued by government-sponsored companies like Fannie Mae and Freddie Mac.

Last week, the central bank said it would offer up to $100 billion through a new auction program that allows financial firms to take out loans at wholesale rates.

On Tuesday, the Fed also increased currency swap lines with the European Central Bank and the Swiss National Bank, to $30 billion and $6 billion. That is an increase of $10 billion for the European Central Bank and $2 billion for the Swiss bank.

Edmund L. Andrews contributed reporting.
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