Borrowing from the Fed

8/13/2008:

The same Hoboken411 reader that wanted to discuss Rent vs. Buy earlier in the week, is concerned about the amount of borrowing by American banks lately.

He says: “Is that funny blue line supposed to do that?”

federal-reserve-borrowing.gif

Source: http://research.stlouisfed.org

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7 Comments on "Borrowing from the Fed"

bri777
Member
bri777

[quote comment=”99203″]How is this H411?[/quote]

Try getting a mortgage.

homeworld
Member

[quote comment=”99219″]We can get into a political debate about the Fed’s role…[/quote]

It’s sad that the defending the Constitutional is considered a politcal debate.

YipYap
Member

Haven’t you heard we are turning Japanese.

http://www.youtube.com/watch?v=EpCcelpvkps

honcho
Member
honcho

Don’t forget HUMC….Harvey and Joan now have access to the window as well!!!

Chop!Chop!
:mrgreen:

bmoc04
Member
bmoc04

We can get into a political debate about the Fed’s role, but the reason for the shoot up is because bank’s balance sheets are strapped due to the packaging of bad loans and the over-extension of credit. Also, the Fed lending window was opened to investment banks for the first time ever. Traditionally, it has been reserved for commercial banks. With i-banks in the mix, it will increase the amount loaned by the Fed.

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