Safe Mode: On
Stressed banks borrow record amount from Fed

Banks borrowed a record amount of funds from the Federal Reserve in the latest week as the year old credit crisis took a persistent toll, while the commercial paper market continued to contract, signaling tough conditions for short term borrowers.
Banks' primary credit borrowings averaged $17.45 billion per day in the latest week, the second straight week this had hit a record and up from $16.38 billion the previous week, Fed data showed on Thursday.

"It shows there's a shortage of liquidity in the system," said Christopher Low, chief economist at FTN Financial in New York.

Secondary credit the Fed extended, which is usually taken out by banks in need of emergency cash, rose to $89 million in the latest week, from $34 million the week before. Although these numbers are still very small compared with primary credit, "What that tells you is that there's an increasing number of banks

-

Added: Aug-1-2008 
By: PiRaTeCoPy
In:
Other
Tags:
Views: 2435 | Comments: 8 | Votes: 1 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 1
You need to be registered in order to add comments! Register HERE
Sort by: Newest first | Oldest first | Highest score first
Liveleak opposes racial slurs - if you do spot comments that fall into this category, please report them for us to review.
  • source http://biz.yahoo.com/rb/080731/markets_credit_banks.html?.v=1

    Posted Aug-1-2008 By 

    (0) | Report

  • good post, as usual....

    fanny/freddie, citigroup they're all going down..

    they call it 'borrow' but they aint goin to pay it
    back... lol...

    I like 'off-book-assets' , it's dept that you don't
    show on the books... lol...

    citigroup has 1.1 trillion of it...

    America - what a sham

    Posted Aug-1-2008 By 

    (0) | Report

  • As fiat money perniciously loses value, time preferences shift upwards as it makes more sense to spend a depreciating currency today than save for the future. And, better yet, what is more seductive than to borrow ever-depreciating fiat money %u2013 as heavily encouraged by the Federal Reserve %u2013 and pay the principal back with money that has become worth even less? Gradually, savings becomes a vice, profligacy a virtue, and the character of a people regresses to a permanent state of adole More..

    Posted Aug-1-2008 By 

    (0) | Report

  • http://www.mises.org/Money.asp

    a good place...

    Posted Aug-1-2008 By 

    (0) | Report

  • Unreal. Perhaps someone can clarify this for me, but is not the federal reserve really owned by foreign banks? Is not our fake money printed by the Federal Reserve, i.e. our government does not even print its own money? Perhaps someone can explain to me why is exists when congress forbids the existence of it? Perhaps someone can tell me the owners of the banks that own the Federal Reserve, i.e. our country?

    Posted Aug-1-2008 By 

    (0) | Report

  • Yeah, big surprise. Infiltrators, cartels and crime organizations out of control, and leftists throwing money at BS. Walmart and Clinton alone have seriously damaged the country handing industry to Red China. This was their objective; "We rule or we ruin".

    Posted Aug-1-2008 By 

    (0) | Report