Bailing out the world

By Michelle Malkin  •  November 30, 2011 09:35 AM

Fire up the Mother of All Credit Cards!

Fresh off the news that the Federal Reserve doled out $1.2 trillion in previously undisclosed loans to banks (story here) in 2008 comes today’s news of the Fed’s latest Bailout of the World — euphemistically known as a global “coordinated action:”

Central banks from developed nations Wednesday took coordinated action to shore up the global financial system as Europe’s rolling debt crisis continues to trouble markets.

The action by the U.S. Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank makes dollar funding cheaper for European banks that hold dollar-denominated securities or make U.S. dollar loans, but doesn’t address the fundamental problems related to European government debt that now plague the financial system.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the Fed said Wednesday in a statement.

The central banks agreed to lower the pricing on existing temporary U.S. dollar liquidity swap arrangements. The move cuts the rate by 50 basis points, taking the new rate down to the U.S. dollar overnight index swap, or OIS, rate plus 50 basis points, the Fed said.

“This is a very big deal if you are trading Eurodollar contracts … but it doesn’t change any of the fundamental issues in Europe,” said Michael Cloherty, head of U.S. interest rate strategy at RBC Capital Markets.

Here’s the Fed statement.

Doug Powers: Gird Your Coins.

ZeroHedge: “Luckily, when this step fails, which it will, Mars can always come and bail us out.”

Sing with me: We are the world. We bail out their children…

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Comments


  1. #101
    On November 30th, 2011 at 3:23 pm, Pasadena Phil said:

    On November 30th, 2011 at 3:11 pm, Truesoldier said:

    Let’s say Ron Paul were to win and the size of governemnt is not reduced (because the President cannot unilaterally abolish anything that was created via legislation)what will you say then? Will you accuse Ron Paul of being part of the “status quo”?

    Why can’t we use that kind of reasoning to question the “front running” polymorphs? The most important problem we are facing is the end of our constitutional society because of how globalization of the world’s banking system has destroyed national sovereignty. Ron Paul, regardless of how he stands on the other issues, is the only candidate who we know for sure would be fighting the entrenched interests to reverse globalization by first going after the Fed.

    Instead of pointing out how “flawed” Ron Paul is, how about finding a better candidate who has credibility on ANY issue? You are advocating substituting and inept and corrupt politician with one of several inept and corrupt Republicans. We end up in the same place and that is the point. We need to derail this train now.

    If Ron Paul is the only candidate who is credible in addressing the biggest threat to our constitutional freedom, then that is who I will vote for while disregarding his “flaws”. If he doesn’t run 3rd party, I’ll vote against the one-party status quo by voting 3rd party some other way.

  2. #102
    On November 30th, 2011 at 3:29 pm, happyscrapper said:

    On November 30th, 2011 at 2:42 pm, 123upnorth said:
    Isn’t ILMC, just Chapotuer renamed?

    #98On November 30th, 2011 at 2:50 pm, T-Bone said:
    More like LGM

    Definitely like LGM! Chap was way more intelligent than this moron. Which leads to the question…did Chap get banned? If so, why him and not ILMC?? Chap actually contributed to the conversation and I miss him. He used wit and humor and was entertaining.

  3. #103
    On November 30th, 2011 at 3:38 pm, Truesoldier said:

    On November 30th, 2011 at 3:23 pm, Pasadena Phil said:

    Why can’t we use that kind of reasoning to question the “front running” polymorphs?

    Um, you have been doing that the entire time which is fine, but I am pointing out to you that the same could be said if Ron Paul were elected as he cannot do everything that people such as you and 123upnorth has suggested he will do. The President is only one branch of government, so regardless of whom is President they cannot act alone. They cannot even enter legislation into the system without it being sponsored by a member of Congress. My point is the Ron Paul supporters constantly tell us all these things that a President Paul would do, but they never tell us how he will accomplish all these things.

    The President has more power over foreign policy (as the commander in chief) then he does over financial issues we are facing today. Sure, the President can suggest what to do, but he cannot enact it without the help of Congress. On the other hand, the Presidents foreign policy positions have more immediate consequences through the State Department. The President cannot enter into treaties or deals without Congress, but he is the one who gets those deals rolling.

    Instead of pointing out how “flawed” Ron Paul is, how about finding a better candidate who has credibility on ANY issue? You are advocating substituting and inept and corrupt politician with one of several inept and corrupt Republicans. We end up in the same place and that is the point. We need to derail this train now.

    Again you assume you know who I am supporting. For all you know I may not be supporting anyone who is even running right now. Perhaps that is why I have advocated multiple times (including earlier in this thread) ensuring that we challenge the RINO’s and Liberals in Congress with Conservative candidates so as to be able to effect real change.

  4. #104
    On November 30th, 2011 at 3:44 pm, Roland said:

    Which leads to the question…did Chap get banned?

    No. He just got very busy. He is a young leftist lawyer in DC. The more government there, the more need for lawyers. The more corruption there, the more need for lawyers.

    Very, very busy.

  5. #105
    On November 30th, 2011 at 3:48 pm, Truesoldier said:

    On November 30th, 2011 at 3:29 pm, happyscrapper said:
    Definitely like LGM! Chap was way more intelligent than this moron. Which leads to the question…did Chap get banned? If so, why him and not ILMC?? Chap actually contributed to the conversation and I miss him. He used wit and humor and was entertaining.

    He did add to the conversation. Makes me wonder if he left the site as he was found that he was starting to agree with us…lol

  6. #106
    On November 30th, 2011 at 3:57 pm, madmonkphotog said:

    We have no money, but we’re bailing out countries which, much like welfare recipients here in America, don’t want to change their habits because they know someone will always be there to give them a handout.

    How does the saying go, “there’s a sucker is born every minute”?

  7. #107
    On November 30th, 2011 at 4:01 pm, T-Bone said:

    I am pointing out to you that the same could be said if Ron Paul were elected as he cannot do everything that people such as you and 123upnorth has suggested he will do.

    The same thing can be said for any politician in a minority party. There amost certainly has to be compromise and quid pro quo. Presidents and Congresscritters are not all powerful. They need help to govern and to get help they must help others. It’s not a one way street. Obama and Bush both found that out even though they both controlled White House, Congress and Senate for some period of time.

    Bachmann can vote yes or no on all the correct issues but she is just one voice. She needs others to effectively accomplish anything. Same for Paul or Romney et al. Interestingly, Gingrich is a seasoned politican with the power of persuasion and knowledge of how to get things done with compromise.

    Of course, he will tell us anything to get our vote and then will find another prettier date for the dance. Everyone has flaws I guess. I even heard Obama was not perfect. Can you imagine that?

  8. #108
    On November 30th, 2011 at 4:07 pm, Truesoldier said:

    On November 30th, 2011 at 4:01 pm, T-Bone said: Bachmann can vote yes or no on all the correct issues but she is just one voice. She needs others to effectively accomplish anything. Same for Paul or Romney et al.

    Exactly my point, a point that some in the Ron Paul camp seem to miss out on. There are some in the Ron Paul camp who truly seem to believe that if Ron Paul were elected President he would be able to go in there and just start shutting down different agencies. The reality of it is that a President cannot do that and still be following his oath to the Constitution. He would need help from Congress and with the way Congress is as of right now he would never get that help.

  9. #109
    On November 30th, 2011 at 4:30 pm, John Deaux said:

    Sorry, LGM was a swoop and poop troll. He’d post a Dem talking point and run away. At least he wasn’t insulting like our current crop.

    Chap tried to provide a voice of reason/devil’s advocate response to every subject.

  10. #110
    On November 30th, 2011 at 4:35 pm, T-Bone said:

    Obama wanted Universal health care and to raise taxes on the rich. He could not do it. All these drastic change ideas are scary to me. Cains 9-9-9 plan while seemingly simple will create chaos. Going to a flat tax creates big issues. I think Newt pointed that out in a debate.

    Ending the Fed, most government agencies, and isolationst policies will create havoc. They may be good ideas long term but the implementation should be done incrementally which unfortunately in Washington speak means never.

    I prefer incremental change on common ground first, not drastic overhauls. First, we have to come to an understanding of the basic issue of taxation. Keynesian ecomonics vs Reaganominc, etc. I am sure of one thing. You can not spend more than you have.

  11. #111
    On November 30th, 2011 at 4:56 pm, The Ugly American said:

    And like clockwork, the Dow goes wild.

    Talk about your market manipulations …sheesh!

  12. #112
    On November 30th, 2011 at 4:57 pm, Green eyed Lady said:

    ZeroHedge: “Luckily, when this step fails, which it will, Mars can always come and bail us out.” :roll:

  13. #113
    On November 30th, 2011 at 4:59 pm, Pasadena Phil said:

    On November 30th, 2011 at 3:38 pm, Truesoldier said:

    The President is only one branch of government,…

    But as “the twoenty” that stood the entire government on its head earlier this year proves, if you fight for what the majority of voters are clamoring for while the leadership of your party argues that they can’t do anything because they are only 1/2 of 1/3 of the government, you can defy the numbers.

    The Democrats never passed a budget despite having filibuster-proof majorities in both houses of Congress. The GOP had the same power from 2000-2006 but still grew government entitlement spending the most since LBJ.

    It’s not the numbers, it’s the “who”. I would rather have 40 new true conservatives next year that are willing to stand and deliver like “the twenty” did this year than have a veto proof GOP Congress that again sells out.

    BTW, most of the GOP in Congress approved Bernanke’s titanic global bailout at US taxpayer expense today. Does it really matter what our GOP contenders say? Other than Ron Paul, can any of the others be believed?

  14. #114
    On November 30th, 2011 at 5:01 pm, Green eyed Lady said:

    On November 30th, 2011 at 2:23 pm, Ilovemybarryandlarryblow-updolls said:
    Hey look!

    You’re an idiot – does someone help you dress yourself, too ? – tie your shoes, button your shirt? – must be someone because you write like a braindead obot zombie – Soros should really try to get a better class of bots.

  15. #115
    On November 30th, 2011 at 5:45 pm, T-Bone said:

    She definitely is one of the stupidest girls on the planet. Thats why she supports Obama. Thats his typical supporter and why our country is in such a mess.

  16. #116
    On November 30th, 2011 at 5:46 pm, Truesoldier said:

    On November 30th, 2011 at 4:59 pm, Pasadena Phil said:
    It’s not the numbers, it’s the “who”. I would rather have 40 new true conservatives next year that are willing to stand and deliver like “the twenty” did this year than have a veto proof GOP Congress that again sells out.

    Did you even read my post, because I said that we need to work at replacing the RINO’s and Liberals in Congress with Conservatives.

    Does it really matter what our GOP contenders say? Other than Ron Paul, can any of the others be believed?

    Does it matter what Ron Paul supporters believe he will do or what reality will see happen? You can believe Ron Paul will shrink the government all you want, but without a Conservative Congress he would get nothing accomplished regardless of what he would like to do.

  17. #117
    On November 30th, 2011 at 6:06 pm, Green eyed Lady said:

    Speaking of idiots #114

    Obama Condemns Attack on “English” Embassy in Tehran

    A palate cleanser courtesy of our most brilliant President ‘evah’.

    In a press conference this evening, the president referred in stumbling fashion to the “English Embassy” in Iran instead of the British Embassy. One can only imagine the kind of howls of derision that would greet any presidential contender if that kind of basic error were made before, say, the editorial board of the Milwaukee Journal Sentinel.

    http://conservatives4palin.com/2011/11/obama-condemns-attack-on-english-embassy-in-tehran.html

  18. #118
    On November 30th, 2011 at 6:14 pm, T-Bone said:

    Did they storm the the Scottish Embassy? Maybe Obama thinks Wales is a big fish or something he does when he doesn’t get his way.

  19. #119
    On November 30th, 2011 at 6:28 pm, Truesoldier said:

    In a press conference this evening, the president referred in stumbling fashion to the “English Embassy” in Iran instead of the British Embassy.

    In a follow up he said he believes that the problem is that the Iranians do not speak very good British…..

  20. #120
    On November 30th, 2011 at 6:53 pm, CandanceM said:

    Never fear: we’re getting a RINO in 2012, and with Obama gone this will all disappear…

  21. #121
    On November 30th, 2011 at 7:16 pm, T-Bone said:

    Rino
    - sharp nose for politics
    - known to be horny
    - not an easy pushover
    - bullish on markets
    - thick skin for media attacks
    - poor eyesight so can’t see things coming
    - large size meaning it needs to feed a lot
    - relatively small brains for an animal this size
    - salad eater
    - endangered species- white, black & Indian rinos
    - few natural predators other than liberals
    - reputation of being tough but are easily poached while feeding

  22. #122
    On November 30th, 2011 at 9:14 pm, Cal City Conservative said:

    That’s pretty good T-bone #121.

  23. #123
    On November 30th, 2011 at 10:04 pm, AmericanGirl30 said:

    Can anyone translate the info in this blog post into plain English for those of us who don’t understand what was done today? Talking about changing “basis points,” “dollar liquidity swap arrangements” (whatever that is), and lowering this and making it easier to do that… I can’t make heads or tails of it! It doesn’t straight out say “the Fed agreed to give Europe X billion/trillion dollars today” so I don’t understand what they did actually do, and why it’s so bad.

    I consider myself an otherwise intelligent person as well as politically aware…and if I can’t understand what’s being done to us, then I assume the masses of mostly apathetic and/or uninformed and/or unthinking Americans have not the slightest chance of doing so. Which I’m sure is exactly how the gov’t and the Fed want things.

  24. #124
    On December 1st, 2011 at 12:35 am, T-Bone said:

    Short version is the cost of money and the exchange rates between currencies. I think they lowered the cost to borrow it from us and built in some exchange rate protection to help if their problems create exchange rate issues from the loss of value in their currency.

    Probably similar to our Quantitative Easing which is just printing more money so the money in circulation loses values but they have dollars to pay for stuff. We all end up paying for that. To me, its a redistribution of wealth when my money is worth less because they printed more to give to all their constituencies.

  25. #125
    On December 1st, 2011 at 1:24 am, Hiraghm said:

    Gingrich is a seasoned politican with the power of persuasion and knowledge of how to get things done with compromise.

    I’m so sick of hearing that phrase “get things done”.

    If they’re doing what I don’t want done, I DON’T WANT THEM DOING IT.

    I don’t care what they do or accomplish, if it’s not what I want done, to hell with it.

    Now tell me how compromising with people diametrically and passionately opposed to everything I favor, is going to get me what I want?

    Too bad I can’t be President; you may not like what I get done, but I’ll get it done. See, as President, I can hold my breath longer than anyone in Congress. As President, I’d be willing to see the country shut right the heck down. I don’t mean no budget; I mean sending every federal worker home until Congress learns to behave. I mean vetoing every single bill that comes across my desk, no matter how good it is. I mean ordering the marines to conduct readiness exercises in the Congressional office building, simulating a terrorist attack, only maybe with live ammo… who knows? Over and over. Post TSA screeners at the entrance to the cloakrooms. Conduct thorough TSA searches of any vehicles (air, sea or land) that any Congresscritter or their staff is going to board… repeatedly. Two hour delay? Try Twenty hour delay…
    And if they try to impeach my arse… declare martial law.

  26. #126
    On December 1st, 2011 at 1:26 am, Hiraghm said:

    Compromise is me only getting some of what I want, and letting them get some of what they want. But, EVERY SINGLE THING they want is deleterious to the nation and diametrically opposed to everything I value.

    So, how do I “compromise” and get everything I want, which is what we have to have to save the country, and not-give them anything they want, all of which adds to the destruction of the country?

    “Compromising” with Democrats is giving them what they want today for a promissory note for the indefinite future.

  27. #127
    On December 1st, 2011 at 8:05 am, Dexter Alarius said:

    On December 1st, 2011 at 1:26 am, Hiraghm said:
    Compromise is me only getting some of what I want, and letting them get some of what they want. But, EVERY SINGLE THING they want is deleterious to the nation and diametrically opposed to everything I value.

    Exactly!
    One shouldn’t compromise with “wrong”.

  28. #128
    On December 1st, 2011 at 12:59 pm, T-Bone said:

    So you guys are uncompromising. Hows that working out for you in business, life, family, religion, and choice of restaurant to eat out at?

  29. #129
    On December 1st, 2011 at 9:49 pm, Hiraghm said:

    On December 1st, 2011 at 12:59 pm, T-Bone said:

    So you guys are uncompromising. Hows that working out for you in business, life, family, religion, and choice of restaurant to eat out at?

    Business doesn’t apply. Life, it’s led me to have very few people in my life, but those few are *very* close. Family, see, life. Religion, That’s between me and God, but no, I don’t compromise with the idea that Islam may be *kind of* right or Wicca may be *kind of right*. Choice of restaurant? Works out perfectly. I will not compromise on eating at a restaurant that doesn’t serve food I find edible and enjoyable.
    Call me fickle that way.

  30. #130
    On December 2nd, 2011 at 9:42 pm, chapoutier said:

    Not banned. Just busy/reprioritized. I am sure I will make a cameo appearance or two as we get closer to November 2012.

    Hope everyone is well.

  31. #131
    On December 5th, 2011 at 11:08 am, spaceycakes said:

    hi chap

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