Bubble, Bubble: Unprecedented Bailouts and Loans from Fed
Oct. 25, 2008 (EIRNS)The weekly Federal Reserve report on how much banks are borrowing from the bailout facilities, released Thursday, shows that banks borrowed this week at the highest rate on record. On Oct. 22 alone, banks borrowed $107.5 billion, which is an all-time high. The daily average for the week, from Thursday to Wednesday, was $105.8 billion a day. The previous all-time high was a daily average of $99.7 billion, the previous week. At the same time, over the last week, another $144.2 billion in loans were made to money market mutual funds. In a third category, investment banks, Goldman Sachs, Morgan Stanley, and Merrill Lynch borrowed another $111.3 billion for their London broker-dealer subsidiaries. Reporters at the White House briefing today tried to extract an answer from White House spokeswoman Dana Perrino about why such skyrocketing borrowing by banks "after" the Paulson Bailout. Perrino claimed that the $700 billion approved by Congress has not actually gotten to any banks yet--Paulson's team is still hiring "the right kind of consultants" to administer the bailout.