US Calls for Coordinated Response to Credit Crisis
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By Reuters | 06 Oct 2008 | 10:49 AM ET
U.S. officials called for a “forceful and coordinated” global response to the credit crisis Monday as financial market confidence cratered despite another heavy dose of central bank lending.
The Federal Reserve said it would begin paying interest on reserves banks hold at the Fed, a move that would allow it to keep flooding markets with cash without driving its benchmark federal funds rate below target.
The Fed also expanded the amount of money offered in its 28-day and 84-day Term Auction Facility—or TAF—auctions to $150 billion each, and increased the amount to be offered in two TAF auctions in November to $150 billion each as it tries to ease end-of-year funding strains.
In all, the Fed said $900 billion in TAF credit would be available for year-end needs.
Despite the aggressive effort to ease credit strains, the blue-chip Dow Jones industrial average tumbled 250 points, or 2.5 percent.
A $700 billion U.S. bailout package failed to quiet investors’ concerns that the U.S. financial system and the broader economy have been badly weakened by a year-long credit crisis.
A series of bank rescues in Europe over the weekend added to concerns that the problems were quickly spreading.
The President’s Working Group on Financial Markets, a committee of top financial regulators that President Bush convened to address the crisis, said market conditions were extremely strained.
The complexity of the crisis meant policy-makers needed to use all tools available “in forceful and coordinated ways across regulatory and supervisory agencies in the United States and throughout the world, “, the group said.
“This will involve moving with substantial force on a number of fronts,” it added.
In a separate statement Monday, the U.S. central bank said, “The Federal Reserve and the Treasury Department are consulting with market participants on ways to provide additional support for term unsecured funding markets.”
The move was another effort to try to restore normal lending to short-term markets that have become frozen as banks grow increasingly wary of lending to one another.
“Together these actions should encourage term lending across a range of financial markets in a manner that eases pressure and promotes the ability of firms and households to obtain credit.” The Fed also said it “stands ready” to take additional measures to restore normal market functioning.
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October 6th, 2008 at 3:10 pm
My comment is more or less… no comment. On a previous page concerning the $700 billion bailout, an extremely crucial comment I tried to post with information on the truth, and realistic alternatives to this whole mess was rejected by the moderators of this site, and not allowed to be posted. This being the case, there is no reason for me to say anything more despite the fact that I agree that all the things happening now, and what they (the government, and the federal reserve system) are planning is unacceptable. No point in trying to spread the truth if the people who claim to be working for the freedom of all are not willing to cooperate. I am against the government, against the federal reserve. I am on your side… I’ll say no more, unless I see proof that this site is really willing to help by being open minded enough to at least let free speech be the ruling party here… which they are not.
October 6th, 2008 at 3:30 pm
What did you say in your last comment, that would have warranted it’s moderation?
October 6th, 2008 at 3:45 pm
The Congress has thrown out our constitution in no uncertain terms - there is no provision for bail outs - there is an intention to provide for the COMMON good. That would NOT be a bail out of the criminals in this shameful fiasco. No meaningful solution to our dilemma will be found until the true cause of it is acknowledged: imprudent lenders and flagrant disregard for contract law and elected officials derelict in their duties causing millions of buyers to be thrown into foreclosure and stopping their payments on their mortgages. The credit crisis is a natural consequence of the housing market collapse. The solution? We must realize that since there are millions of defaults either having been taken, in the process of being taken or about to be taken and they all represent cash that is no longer flowing. The most just and fastest effective thing that could be done is to go to the lenders and threaten them with legal action for their imprudence (we know they lent to people they knew couldn’t pay them back by the terms of the contracts) and have them recast the mortgages in amount the borrowers can afford to pay. Set aside the defaults for all residential buyers and put a moratorium on all such foreclosures. Get and keep those payments coming in and the cash flowing again. This will accomplish many things. It will reclaim the neighborhoods devastated by the lenders’ greed, ease the burden off policing and maintenance for the cities and counties so afflicted with these foreclosed properties, restore at least some of the value of the neighborhoods so afflicted by eliminating vacancies and vandalism. It will by natural consequences indicate the bottom of the market, thereby giving us the confidence to make the important decisions we will need to based on where we can go from where we actually are instead of having to wait for the Treasury and Fed and then have them yell “FIRE” again. It is justice for all. The prudent man rule means that lenders are responsible to make sure the borrower can repay what is loaned. It has been employed in the courts since 1830. There are legal consequences for ignoring this responsibility, like not being able to collect on the debt from the debtor. There is also the matter of enforceability of a contract where there is no meeting of the minds on the terms of the contract. According to testimony during congressional hearings, borrowers were not disclosed the truth of their terms in many cases. Without knowing the truth of their debt, they were unable to make an informed decision regarding their ability to perform the contract. We must get this money flowing again as soon as possible.
October 6th, 2008 at 4:57 pm
If McBama was born in Kenya Africa as the found hospital records seem to show, and he still wins the majority vote but cannot take office. Does that open the door for Chuck Baldwin to get elected so he can name Ron Paul to be Sec. of the Treasure and finally straighten out this mess?
October 6th, 2008 at 5:19 pm
Ron Paul is a fraud and a reptilian. i would not trust that man as far as i could throw him.. we are on our own.. the mess will get worse, why? study Planet X and see why…
October 6th, 2008 at 7:01 pm
Joe terry, Don’t waste yours or our time babbling about B.S. Ron Paul is not perfect, but he is the real deal all you and the rest of the morons need to do is look at Paul’s 30 year record in office, never a vote for tax’s gun control, or un-constitutional band aid and illegal measures. etc. etc. Educate your self and turn that anger into something that will help tour country. I know it is overwhelming sometimes, but if we go down we’re going down swinging. God bless America, America Bless God..
October 6th, 2008 at 7:29 pm
Joe Terry, Ron Paul is my HERO. Have you read his new book and now his Bio? Please do some research and see how he has fought for We the People for over 20 years. Go to our web site http://www.campaignforliberty.com
October 6th, 2008 at 8:27 pm
joe terry if you want to waste your time believing you were “created” by alien gods so be it- just don’t go spouting off about Ron Paul! Create your own website and collect all your yahoos there so we don’t have to look at it! This is for political discussion about the direction of this country, not some fruitcake wanting to excuse himself from answering to the one try God.
October 7th, 2008 at 1:19 pm
I just want to know when we are going to ‘unify’ and have a massive ‘march’ by (hopefully) ‘hundreds of thousands’ (maybe a million!) in D.C.? Perhaps that might get us some ‘media coverage’ and an opportunity to show these ‘rapists’ that “We, the People”, are NOT going to take it anymore and that we are going to ‘take our country back’!! Us sitting and reading articles on-line, posting blogs, etc.. Those are good for ‘educational purposes’, but as I see it, we need to start banning together, showing them that we won’t tolerate their behavior anymore and hold them ‘accountable’. Right now is a great time to do so, before the election! Perhaps after these Presidential candidates see what they are really up against, they may want to ‘drop out’ and let someone more ‘deserving’ serve us… someone that still believes & upholds to the ‘Constitution’ and our rights. We have power in ‘numbers’… But I personally think it’s time for our voices to be ‘heard’ and for us to be ’seen’ in a BIG way! People have marched through D.C. for LESSER causes!! I’m I ’silly’ for thinking this way..? Has anyone started a ‘campaign’ to gather people up for such a cause?… Curious in Texas!!!
October 7th, 2008 at 2:03 pm
Thanks Gary for letting me know about the March this Summer. Unfortunately, I’m a ‘newbie’ and wasn’t aware of that… but hopefully I will be able to attend the next one and we can double the participation! Thanks! PJ
October 7th, 2008 at 7:34 pm
That’s a great start, but we may need to ramp it up. Has anyone been to:
http://www.infowars.com
You’ve heard the Alex Jones audio stream?
You can call and listen to the looping audio stream as well:
575-464-3070
October 8th, 2008 at 1:31 am
Gary, I told the full on truth about the world’s monetary system (our screwed up economy today) this government, corporations, and world leaders who are fully corrupted, and need to be stopped. i explained that this problem we are facing here in the US is not just a national one, but a global one. I also explained the shortest truth that I could behind the incidents that happened on september 11th 2001. Add to that, the complete uselessness (and danger) of currency of any kind (which I’ve been telling people for years that money should never exist). I explained that this system we’re being enslaved by is nothing but a total scam/fraud founded by elite bankers who want to own everything without regards to the best interests of the people living on this planet. This economy *needs* to fail on a global scale. People *need* to lose complete faith in their governments, their currencies, bankers, corporations, and the media, so that a more reasonable alternative can be presented that can give the people of this world the opportunity to raise the quality of life for *all* life on this planet without the need for fossil fuels, nuclear power, or anything else that will contaminate the environment. I also gave 2 websites which explain all of this. They also explain those better alternatives, and how those alternatives can help what the current system is halting. (i’ll try to post those in my next comment as they may have been what triggered the moderators)
October 8th, 2008 at 1:37 am
Here are the websites viewed in the order that is most beneficial to those open minded enough to at least look at the truth and decide for themselves…
http://www.zeitgeistmovie.com (viewed in the following order “Zeitgeist - The Movie” and “Zeitgeist Addendum” These movies provided me with information that is vital to understanding what is really happening, how to stop it, and the sources of all their information for you to find and research for yourself. They are each 2 hours long.)
http://www.thevenusproject.com (This site offers an alternative to today’s screwed up monetary system, and the flaws inherent in that system. It presents a resourced-based economy driven by the desire to maximize the quality of life rather than gain profits.)
Every major institution on the planet has lied to, or is still lying to you now, but don’t take my word for it… look at the websites above, and before you tell me I’m crazy or stupid for believing these things, let me ask you one question…
How can you possibly decide that I’m wrong in the things that I say, if you don’t at least take the time to look at what I’m offering as my sources of information? Simply put… you can’t, because that would make you as bad as them.
My goal is your complete satisfaction, health, and a higher quality of life for all, and I want to ensure that your concerns are heard and resolved to the best of my ability. I believe that the people who run these websites have the best ideas on how to accomplish this task.