Federal Reserve USA Bank Bailout Begins
The big banks won’t lend to each because they don’t trust that they would get paid back even 24 hours later, so the Federal Reserve has had to start supplying daily cash up to 75 Billion (with a B) to keep the USA banks afloat. It looks like the financial system will require such extreme measures at least until mid November.
Just in case you missed this EMERGENCY situation, which has been happening since the last two weeks of September after the overnight lending rate between banks hit 10% in the USA. Something like this has happened before at the start of the last GFC back In 2008, just a few days after Lehman Brothers went bankrupt, there was this same sort of intra-bank credit freeze.
It also happened in 2013 in China, when their rates jumped to 20% overnight probably due to bank failure, but the Central Bank of China was able to contain the situation and it did not spread to other countries and the rest of the world.
Here is a copy of the Federal Reserve’s latest announcement:
Reference:
https://www.newyorkfed.org/markets/opolicy/operating_policy_191004
Disclaimer: This post is for informational and entertainment purposes only— it is not financial advice or is in anyway intended to provide any financial recommendation.
“Independent News Reporting by Ken Burridge”
Independent journalist, blockchain and sustainability activist, EV of the Year Judge, photographer, and author that has published over 1500 articles. Mr Burridge’s travels have taken him to over 40 countries and 300+ major cities. He is originally from the USA, but has been residing in Australia for the last eight years. Connect to Ken Burridge on: Twitter, steemit, facebook, minds, Linked in, Uptrennd, official website
