The Federal Reserve is once again secretly shelling out trillions of dollars in the dark, while Congress willingly looks the other way. In other words, the central bank has initiated a replay of the 2007-2010 financial crisis.
You can call it QE4 if you want, or don’t call it QE4. What it’s labeled isn’t as important as what it’s doing. Arguing semantics is not going to change the outcome. The central bank is injecting $100 billion per day into the financial markets. Any label on that cannot hide the fact that if this economy was doing well or was “robust” than there wouldn’t be a need for any of this.
The Federal Reserve Bank of New York first initiated its emergency overnight loans to Wall Street this year on Tuesday, September 17, starting off at the rate of $75 billion daily. It then increased its loans by adding, in addition to the $75 billion daily, 14-day term loans in the amount of $30 billion to be offered three times this past week. But after the demand for the first 14-day loan was more than double the $30 billion offered, the New York Fed boosted the next term loans to $60 billion and increased its overnight loans to $100 billion. –Wall Street on Parade