Topic: Fed Ups Its Wall Street Bailout to $690 Billion a Week as Media Snoozes (Read 224 times)

This scenario maybe the reason why the U.S. Government totally abandoned the gold standard in printing money and now there is no such limitations for the Feds to do as they pleased!

I agree, this is a kind of a financial dilemma which is very unfortunate but ultimately, its the ordinary people that always ends up at the losing side.

It is just a regular expected thing that FED who is very wall street friendly and enemy of the regular people would do something that would help the wall street people and put the whole economy in danger. That is one of the most "awesome" parts of being wall street, you can do as risky as possible stuff to make money, you can leverage your position into billions and even close to trillions in derivatives and whatever but in the end if you don't really have any reason to make a loss, why would you care? That is why it is "awesome" for them, dudes risk it as much as they can and when they fail, FED just prints money and gives it to them and they die.

How could you not really love the way they do business, it is either win for them or lose for us, what an amazing business model.

With that huge amount involved, I was even wondering if it is approved by concerned regulatory bodies or the U.S. Government for that matter because it could trigger another Wall Street collapse as the article in OP mentioned!

Now I guess the cryptocommunity could taunt those financial institutions who questions the integrity of cryptocurrency when in fact they have mud in their face to clean up. Imho

They should start curing the symptoms for potential crisis as it will just get more serious and unavoidable. Way back late 2008 up to 2009 great recession happened and it caused a hell for the people and government dealing with unprecedented economic deep dive. Someone is right calling it sugarcoated behind the word to technically prefer it as borrowed. There is no way groups from Wall St. needs to borrow from feds and it can be hypothesize that these groups aren't financially healthy anymore. One thing's for sure, It isn't a bailout.

That is a heck  a lot of money! This could go to a recession again from seeing it now and can cause devaluation and unemployment. They should be doing solutions now.

Yeah, its more likely that we are now seeing the symptoms of a potential crisis, and I'm hope I'm wrong on that assumption! Perhaps I'm worried if  this will still continue which could indicate of a more serious problem - $690 billion per week sums up to $2.76 trillion per month! Sounds scary!

We are living in a world where manipulations are happening everywhere and unfortunately the world and market of cryptocurrency could not say it is free of manipulations as there are now many analyses that the many market rise in the past were caused by manipulations in one way or another. The big difference is that here in cryptocurrency, we are not directly or indirectly funding the manipulations just like what Fed is doing. All I say is that as long as we are still dealing with humans, there is no escaping  to encounter manipulations in different forms, types and sizes.

Changing the yearly bailout to daily bailout didn’t improve the situation of how crappy Wall Street is doing, in facts it’s horrible one, they did cleverly deceit every depositor to think that their money are very safe since it’s managed every single day, I had no doubt we would soon have hourly bailout in near term, minutes bailout anyone? Or millisecond bailout. BTW, whether you want to invest on the stock market, chance are you buy or you sell it, you’re guaranteed to loss the bet, the market is a rigged trap, think about a professionally designed animal trap, a very good designer will know animal will jump pass the hole trap and they build a rope above the trap to rectify it, whether the deer want to jump over or move pass the trap, it is guaranteed to be caught, no matter how good the deer at gambling. And yeah it’s the same with stock market a zero sum game, they’re so rigged that this trap give you no chance to profit from buying or selling it, when you buy it, the price go down until you decide to cut your loss, and as soon as you clear your position on that stock, it go back up again to the high price, in hope to trap another gullible investor’s money, the DJIA is going up thru the roof, there is only one possibility, no body is buying DJIA, but the price are pushing up in hope that greedy bastard would want to get in for the profit, so that they can punish them severely for being greedy, how is DJIA pumping up fast when no body buying it? There is only one answer, the bailout money, daily bailout are a lot of money compare to yearly bailout, when the DJIA are high enough it would require more bailout money to pump it much higher, I think it would require hourly bailout once DJIA crossing 30,000, and minutes bailout on 40,000, millisecond bailout on 50,000, to the speed of light bailout for 60,000. Talk about the need for speed bailout, the high DJIA also bring one big problem to the table, the inflation, for those on the Wall Street inflation mean very little sense to them since they make profit from the bailout money, but for most peasant who make a living working for the corporate, it mean a lot, it can severe them financially, their pay check can’t afford to pay the expense, and many business would find it is difficult to sustain their business when the inflation kick in, their raw materials cost shooting thru the roof, many product based business slowly moving to the service based business to avoid entirely having to deal with inflating raw materials cost, eventually service based business would also moving to automation to further reducing the cost, at this rate of Wall Street bailout, I can see the entire economy to be ruined by one hopeless company that need endless supply of bailout money. And the timing that DJIA is pumping, it’s perfectly match with bitcoin price too, which also give trader no chance of trying to arbitrate profit from bitcoin to DJIA, which further fortify the facts that DJIA is a zero sum. I’m waiting to see whether bitcoin can get people to forget about the DJIA entirely, we have been stumble upon DJIA for too long that it have made too much buzz all over the media, to get people to get out of DJIA with an invention, I think it would take a lot more efforts, but DJIA is one persistent problem, it can’t be killed or completely erased from everyone memory, because it’s virtual and it take no money to maintain this index, when you can’t kill it, you join it, it is what DJIA have been designed from the very beginning, they are purposely designed to be immutable, the best analogy of buying DJIA in my opinion is same as buying Ripple, it is an oxymoron decision to me, because you’re buying a centralized, immutable, inflating, rigged and fake virtual business, what’s the point of stumble upon all this time, we don’t want to know why we need DJIA again at the first place, but it doesn’t matter as long as it make more profit to the Wall Street, they are more than willing to keep this floating to as long as eternity. They called it a healthy progress, the strong survive over the weak, and strong one is the one that is virtual and don’t require any money down to maintain it, a weak one which is the one require you to accumulate hard asset would slowly dying, is it even up to debate when thing are progressing from physical to something virtual, and there is money on the table that keep it afloat, and nope it’s not a status quo, it is all about survival of the fittest.

I think finance can be seen as having a crisis like this because I think there are some groups that control the money in circulation throughout the country, because the technology that should be more advanced and developing does not create an economic crisis like this, the economy should grow and there are more rich people.

it's really a sign of a crisis of confidence. banks refusing to lend to one another to meet daily liquidity requirements is exactly what was happening during the 2008 crisis. it's certainly not a bailout, but it's ominous in terms of a potential financial crisis that could lead to bailouts.

This is quite an alarming development on Wall St. as I sense a grand conspiracy to cover up what could be an impending crisis among financial institutions where the collapse of just one major entity could trigger a ripple effect that could lead into a major financial crisis!

In the first place, the idea of Feds giving out loans in huge sums suggest these Wall St. entities financial standing are not as healthy as it seems and I agree that this "loans" are sugarcoated term but technically, it is still a bailout meant to help these ailing companies. Imho.

Does not that worry's you to buy on top?  Would not be better buy in 2009 when market crashed? Or you would sell back then and buy back now few times less?  Why you think Buffet is full of cash? He is ready to use it as soon crash will happen. His problem was only he sold to early.

Considering it is just a loan I think it is fine. Daily loans have always been a thing in wall streets life, if you stop giving them that in the end you will see a crumbling wall street.

Now, I would LOVE to see a crumbling wall street, whatever the bad horrible economical outcome of that would happen, I am sure if we could just reset once and whatever bad comes with that reset if we could have higher and harder regulations to keep it ever happening again we would lie a horrible one generation at most but everyone else would live a great one.

However, if we are not letting them crumble that means there is nothing bad going on with the extra loans, sure it is riskier and one day maybe they will not be capable of paying it back and the whole economy goes belly up but as long as system is like this, that's gonna happen time to time.

Despite my limited understanding I share the cautiousness of people here. This is giving the impression that they are propping them up. If you want to cashout some of your crypto for stocks then that's fine but keep the amount you intend for crashes. Never forget what BTC was originally created for.


Just as OPEC is "not" a cartel, it's not manipulation if it's the government doing it.

This might not be defined as a "Bailout" but it just shows you how certain sectors of the financial world are given support by the government to stay afloat.    What would have happened if they did not give that collateral?

Bitcoin is not getting any support from the government and as a matter of fact, it is being sabotaged by the government to favor these financial entities that are on the brink of collapse.

All of this is just smoke and mirrors to fool the public into believing that the financial crisis is under control. The Titanic is sinking and we have government boats trying to keep it afloat.  

The short term daily loan bailout in my opinion only carries one outcome, the bigger the value the stronger the market crash and the stronger the financial woes it would dealt to a investor, and the happier the bank get because they get bigger bonus from gullible trader who loss the bigger money by trading the delusional gambling market which is backed up scam businesses.

If crypto whales bought $1 billion in bitcoin to stabilize or boost prices, the media would label it market manipulation. You can see them do it all the time. They claim tether being used to buy bitcoin is "market manipulation" and that the 2017 run up of bitcoin was "market manipulation" by a single anonymous, unnamed, bitcoin whale.

The federal reserve loans $120 billion dollars a day to banks. Essentially the same thing that tether and bitcoin whales are accused of doing under market manipulation by the media. But somehow its not market manipulation?

Its interesting how financial terminology is prone towards being a double standard.

I think this is not manipulation, it is the protection of their country and the protection of foreign investors.
they do so to strengthen the confidence of foreign investors and do not want US stocks plummet, which will be a loss to China.
This is a necessary action and nothing is wrong when it is a debt, not a free deposit.

AFAIK these loans are virtually identical to bailouts to troubled banks post 2008 under the TARP bill.

The bailouts never truly ended. They simply became normalized to a point where people believed they were standard policy.




Interesting. If you're looking for a counterpoint. Bloomberg published an article claiming more than 50% of the world's banks may be too weak to survive a recession, last month. I made a thread about it here:

https://bitcointalksearch.org/topic/m.52871571

One might say, part of the reason Satoshi invented bitcoin was due to the realization that none of the real issues in the banking industry which led to the 2008 crisis had ever truly been addressed, much less fixed. That's my take on it, anyway.

Why would you drop crypto to run off to stocks, when in the past, you dropped stocks to run to crypto? You'd be killing yourself at that point if you will ever do that. I'm not all entirely sure about how to read this announcement of Fed, but I'm more entitled to believing that they need to somehow let the people's attention back onto the stocks somehow while addressing problems they've had in the past. I'm not entirely sure of the situation of stocks, but that's how I see this recent announcement.

As my fellow bitcointalk member alyssa85 pointed out correctly,  it's not a bailout scheme! It's a simple short term loan given out to the companies with temporary liquidity crunch! Whatever money FED will give out to these companies, will receive more in return! That's very normal in any mainstream economy! What shocking in this entire news is, the amount of money is being lent out and the amount of over subscription! These is a small sign of looming economic crisis!

Hell no, I won't be selling crypto to buy stocks.  The stock market is due for a crash, overdue in fact, and stock prices couldn't get much higher right now.  

These loans, tho...this isn't anything new, and even if they seem like very large amounts, banks are in measurably better shape than they were after the 2008 debacle.  The ones in the states have all been stress tested, and the loans aren't bailout money by any means.  That's just how the financial system operates and always has.

No, these loans are typical and aren't newsworthy, nor are they an attempt to bail any of the banks out.

This is not really a "bailout". It's overnight lending of collateralised loans. So the borrower gives the Fed it's treasuries as collateral, the Fed lends them cash overnight, at the overnight interest rate. The borrower repays the capital and interest the next day and the Fed gives back the collateral.

The only reason they're doing overnight lending is because the major banks have to hold extra cash in their reserves and can't lend it out like they used to.

I don't think 24-hour loans constitute a bailout in anyone's language. A bailout is when tax money is given in return for worthless shares, and there is no repayment.

....



Witnessing US stock markets recent gains, some might feel tempted to sell off their crypto holdings and buy stocks instead, under the expectation traditional equities investments are more regulated, safe and stable in contrast to cryptocurrencies. I hope anyone with those feelings reads the above article. It could shift their perspective on things.

The recent uptick in US stocks could represent market manipulation on the part of federal reserve, bailing out banks and wallstreet who are then throwing bailout capital at stocks to artificially inflate market value.

If Satoshi were alive and active today, I think he might take interest in the dealings of financial regulators and central banks who are continuing to adopt many identical practices today, which initially led to the economic crisis of 2008.