Chronicles Of Depression 2.0: #140

Fed auctions $75 billion to ease credit stresses

WASHINGTON (AP) — The Federal Reserve has auctioned another $75 billion in loans to squeezed banks to help them overcome credit problems and announced it will provide a fresh batch of the loans this month.

The central bank on Tuesday released the results of its most recent auction — the 15th since the program began in December. It’s part of an ongoing effort to ease financial turmoil and credit stresses.

Emphasis added by me.

And:

The Fed also said it will conduct two auctions in July. Banks will have an opportunity to bid on a slice of $75 billion in short-term loans in each auction.

In mid-December the Fed announced it was creating an auction program that would give banks a new way to get short-term loans from the central bank and to help them over the credit hump. A global credit crunch has made banks reluctant to lend to each other, which has crimped lending to individuals and businesses.

Emphasis added by me.

What we are not being told:

The economy is basically dead.

The banks are all near-death.

The bankers all know this, so they won’t lend money to one another. They’re hoping that one will fall, so they can swoop in for pennies on the dollar and shore up their own failed machine with fake profits that look good on paper but don’t actually exist — because the economy is dead.

To all of you out there, everything looks the same.

The music keeps playing and you keep circling those chairs.

What you haven’t been noticing is that the chairs have been taken away while you weren’t looking. Observation is detrimental to having fun.

When the music stops — and it will, before November — all of you are going to be flat on your asses.

Economists will have to coin a new term for it.

“Depression” will seem too mild.

And I’m coining the new term for the Net: Crybaby Blogger.

Have some fucking dignity out there. Don’t display your misery in public. No one else will want to see it. Everyone will be too busy with their own. Put away your idea for a PayPal Donate button. It won’t work.

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