Without Any Legislative Powers, the Fed Is Rewriting the Law and Creating a Permanent $500 Billion Bailout Facility for Wall Street

Wall Street On Parade

The Fed is doing something it’s never been allowed to do in its 109 years of operation. And, it’s doing it without any pushback from Congress.

The Fed draws its statutory authority from the Federal Reserve Act of 1913 which created the Fed’s “discount window” for making loans to Fed member banks which are engaged in making loans for “agricultural, industrial or commercial purposes….” The Federal Reserve Act strictly prohibited the Fed from making loans “for the purpose of carrying or trading in stocks, bonds, or other investment securities….”

After Wall Street trading casinos blew up the U.S. economy in 1929 and brought on the Great Depression of the 30s, Congress enacted the Glass-Steagall Act in 1933 which established federal deposit insurance for commercial banks and outlawed the merger of those federally-insured banks with Wall Street trading casinos (investment banks and brokerage firms). The Glass-Steagall legislation protected the U.S. banking system for 66 years until its repeal by Congress in 1999. Today, all of the megabanks on Wall Street own both federally-insured banks and sprawling trading firms.

On July 28 of last year, the Fed announced that it was creating a $500 billion permanent bailout facility for the trading houses (“primary dealers”) on Wall Street to support “smooth market functioning.” The Fed gave the facility the bland sounding name of “Standing Repo Facility” or SRF. What the Fed was effectively doing was creating a new “discount window” where both Fed member banks and Wall Street trading houses could obtain billions of dollars in cumulative loans if a liquidity crisis arose.

The rest is here: https://wallstreetonparade.com/2022/08/without-any-legislative-powers-the-fed-is-rewriting-the-law-and-creating-a-permanent-500-billion-bailout-facility-for-wall-street/

4 thoughts on “Without Any Legislative Powers, the Fed Is Rewriting the Law and Creating a Permanent $500 Billion Bailout Facility for Wall Street

  1. Only skimmed this way-too-long article, but it just might be the one all the other news is attempting to deflect from. To say that more simply… some of the biggest stories of the day are played up so as to serve as DISTRACTION while they continue to steal what little we have left, coerce us into doing THE CASHLESS CONGO, while making themselves rich beyond measure. We can focus on the expansion of the FBI, or the Jan 6th Capitol “riots,” or the seize of Mar-a-Lago, or…, while they boldly, unlawfully, cruelly move inflation to the UNAFFORDABLE REALM, move the people to deep struggle and desperation. And here, in this admission, so blatantly:

    “…the Fed would simply flip the bird to Congress and effectively rewrite the Federal Reserve Act, giving itself the power to make trillions of dollars in cumulative loans to Wall Street’s trading houses.”

    Like Congress ain’t in on it. Ha!! This sounds like the head of a gambling casino saying: “We have let them win a little for quite some time now, but NO MORE!! All the winnings are ours, they get NOTHING!!”

    Soon they will understand the meaning of the word BACKFIRE!!

    .

  2. Who would walk into a cuntsino!! I wont even wipe my ass there… I dont buy tickets either who wants dirty fckg money!?!!? How bought just being ok and ready for any BS!!!! THE BS IS REALITY FOR NOW .. UNTIL WE STOMP THERE ASS IN THE GROUND!!!!! Ken

  3. All or some of these may be true:

    “Poverty is the parent of revolution and crime.”
    -– Aristotle

    “As a cure for poverty, charity is wrong.”
    — Henry Ford

    “I’m not persuaded that the opposite of poverty is wealth – I’ve come to believe… that the opposite of poverty is justice.”
    — Bryan Stevenson

    “Short of genius a rich man cannot even imagine poverty.”
    — Charles Peguy

    “Republics end through luxury; monarchies through poverty.”
    — Montesquieu

    .

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