Fed’s Balance Sheet Blasts to $5.8 Trillion; Suggests Fed Is Back to Bailing Out Foreign Banks along with Wall Street

Fed’s Balance Sheet Blasts to $5.8 Trillion; Suggests Fed Is Back to Bailing Out Foreign Banks along with Wall Street By Pam Martens and Russ Martens for Wall Street on Parade

At 4:30 p.m. today, the Federal Reserve released the shocking details of what it has been up to in the past week. Its balance sheet has skyrocketed from $5.3 trillion as of March 25 to $5.85 trillion yesterday, a growth of $557 billion in one week’s time.

It's Time to Take Away the New York Fed's Money Button

One of the factors affecting this growth was a $142 billion jump in the amount of its Central Bank Liquidity Swaps, where it provides dollars to foreign central banks in exchange for their local currency. During the last financial crisis, some of these dollar swaps were used to bail out global foreign banks that were in trouble. Given the current condition of numerous European banks, and their ties through derivatives to Wall Street’s mega banks, there is every reason to believe these dollar swaps are another thinly disguised bailout of a Frankenbank-financial system – for the second time in 12 years.

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Wall Street on Parade

Mission: Wall Street On Parade hopes to level the playing field between Wall Street and the 99 percent. Wall Street is a jungle of devices to effect an institutionalized wealth transfer system. The goal of this web site is to provide the jungle guide to the 99 percent in the hope of bringing about citizen-inspired change.