Good News for a Change. . . But the Unchained Fed Inflates Onward
By Anthony Gregory • Monday September 29, 2008 10:33 AM PDT •
The House defeats the bailout bill. Let’s hope it’s the death of it. Let’s hope, against all odds, the feds manage to be restrained by gridlock from such massive interventions for another year or so. Then we can recover and learn the lessons the less hard way, for a change.
Writes Manuel Lora:
Ah, but there’s also this; they won’t give up:
The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression. The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.
Update: It looks like the conservative Republicans and the progressive Democrats tended to be the ones to vote against the establishment on this one. Good for them. Another indication of a political realignment?