Lucas said
Headline news"Business loan bailout - Federal Reserve to buy loans crucial to business to unfreeze markets."http://money.cnn.com/2008/10/07/news/eco…To quote in part:"NEW YORK (CNNMoney.com) -- The Federal Reserve announced a NEW PROGRAM to help the battered market for short-term business loans - taking its CLOSEST STEP YET TO LENDING DIRECTLY TO BUSINESSES. The program addresses commercial paper, a form of short-term funding that is crucial to many businesses operations...".and"... The Fed will buy only top-rated commercial paper, of which there was about $1.3 trillion outstanding in August. About $100 billion of that was in the form of unsecured loans to non-financial firms, and about $600 billion was to financial firms. The other approximately $600 billion is backed by assets at the firms issuing the paper, although that is generally considered unsecured lending as well."(end quote)Shouldn't Congress have a say in this?Why can the Federal Reserve do this without ELECTED representative approval?What happens if the businesses default on these "loans"? What are the consequences for the taxpayer and for inflation?Is it starting to look to you like the whole system is about to collapse but before that happens the privately owned Federal Reserve will ensure that the power-elite lose as little as possible while the rest of us go down in flames? It is looking that way to me. What say you?

Jacob said
Ruby I think you know why... This is how they consolidate their interests. By purchasing stake in corporate loans they can call in the loan once the business has been further weakened, causing it's complete collapse. I watched the panel review of Mr. Fuld yesterday and it became obvious Lehman's failure was directly caused by J.P. Morgan doing the exact same thing. Calling in a loan on a distressed company. It's like a shark feeding frenzy. Once there's blood in the water the "Great Whites" swoop in for the destruction. So It's the closing bell is ringing right now DJIA -494.93 / -4.97%. I'd say that's a bleeding wound.

Monique_Gail said
I think you have it figured exactly. And they are able to do it, because the Original bailout bill actually allows them to do so. I actually believe we are going down, and the powers are taking care of the elite rich, and the rest of us will bear the burden for for it, if we can even survive it at all.

JonasUpdates_ said
I assume you have a job and want to remain employed so the purchase by the Fed. of commercial paper(ie: top rated corporate bonds) is a good thing to do until the corporate credit market returns to a rational and normal state. As for Congress having a say let me ask you a question. Where has Congress(both parties) been throughout this developing crisis? Where were they when the ridiculous situation at Fannie Mae and Freddie Mac was allowed to spiral out of control? Place your faith in your judgement as a responsible citizen and not in the flawed judgement of some politician whose main concern seems to be the campaign contribution that helps him or her get reelected.

telegraafnl said
lol, this is getting bad.http://www.cnn.com/2008/POLITICS/10/03/c…(CNN) -- California may need a $7 billion emergency loan from the federal government to pay for "teachers' salaries, nursing homes, law enforcement and every other state-funded service" this month, Gov. Arnold Schwarzenegger warns. --------------------------------------…Where does it end? Are we willing to keep handing out money and inflating for everybody and everything that runs out of money? Wake up people........

mino_mai said
Same manure, different flies.It seems as though the credit institutions, banks, politicians and execs are being protected. Somebody is bieng naughty. The $70 trillion bailout for the 95% of the citzens that own less than 5% of the wealth is the way to go. Freeze and lower all prices of course. These are the ones that need bailing out. It would stimulate the economy, the morale, put government in the hands of the People and faith in government. The stock would rise. Markets would improve. If millions of dollars can stimulate CEOs and other execs, imagine what it would do for the people whom are really suppoedto be the real government.Would not $250 million stimulate you, your family & friends? Would that not cover a portion of your bills? Could you start a business or collaborate with others who also had this type of money? All of that spending would definitely stimulate the economy. Since the economy depnds upon flow, then let the largest flow come to and through the People. It would give new meaning to the phrase "Power to the People." It is a pity that in a mercantile based system the victims know least about matters financial and mercatile and will not insist upon accountabiity from their financial oppressors.People do get the goverment that they deserve.