In the last state of the union address
given by President Bush in January,
some $39 BILLION, yes with a "B", was
sent to the country of Africa in that
budget before Congress. This while they
were also griping about the $10 billion
a month that it cost to provide for
our troops in the 2 wars they are running.

Then now later in the year, here comes
the Wall Street crisis. There is a lot
of overwhelming news going on right now
about the nation hemorraging money
and it's hard to know what is important
and what is repetitive. But I have
pulled this little GEM out to give
to you below as Veterans everyhere
get ready to head on out to the voting
booth.

It seems that our already wealthy bank
system was allowed for an entire straight
week to BORROW at the Federal Reserve,
a whopping $105 BILLION dollars
a day. This is not going to the poor
y'all this is going straight into the
businesses who bungled this entire
national credit market to begin with.

They were allowed to borrow to keep
their lavish lifestyles, and yes, even
to keep on a donating to the Republican
election campaigns right up to the
very end. And you can be sure that the
end is coming in just a few days,
sandwiched in between our Veterans Day
holiday.

The combined effects of World Aid AND
domestic crisis, one after another
is completely tanking the fragile
"free market" money system that separates
America from Ho Chi Minh City so
chew on that one for a minute and
see how much it makes ya spit!

Where is the Capitol Hill outrage that
the great national sucking sound was
that of $105 BILLION leaving the taxpayer
pool on a DAILY basis at the
Federal Reserve: all of this right
at the moment that our city and county
governments are nearly hanging bankruptcy
signs out on the sidewalk for their
own government enterprises?

This is a crisis within a crisis everybody
and I am hoping that this final shocker
of an article below will finally put
it all into perspective for some of
you. America is a sinking ship and
Putin's Russia may very well be doing
a little celebratory dance right now.

see below



Oct 23, 4:57 PM EDT


Banks borrow record amount from Fed


By JEANNINE AVERSA
AP Economics Writer



WASHINGTON (AP) -- Banks borrowed in record amounts from the Federal Reserve's emergency lending facility over the past week, while investment banks drew loans at a slightly lower - but still brisk - pace, a fresh sign of the credit stresses bedeviling the country.

The Fed's report, released Thursday, showed commercial banks averaged a record $105.8 billion in daily borrowing over the past week. That surpassed the old record - a daily average of $99.7 billion - from the prior week. On Wednesday alone, $107.5 billion was drawn, an all-time high.

For the week ending Wednesday, investment firms drew $111.3 billion. That was down from $131 billion in the previous week. This category was broadened last week to include any loans that were made to the U.S. and London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley and Merrill Lynch.

The Fed report also showed that over the last week $114.2 billion worth of loans were made to money market mutual funds - via banks - to help the funds, which have been under pressure as skittish investors demand withdrawals. The Fed announced a new effort earlier this week to help shore up mutual funds.

Squeezed banks and investment firms are borrowing from the Fed because they can't get money elsewhere. Investors have cut them off, moving their money into safer Treasury securities. Financial institutions are hoarding whatever cash they have, rather than lend it to each other or customers. The lockup in lending has contributed to a sharp slowing in the overall economy.

The report also showed the Fed has loaned $90.3 billion to insurance giant American International Group. In mid-September, the Fed said it would provide the troubled company a two-year, $85 billion loan. And, recently the central bank said it would loan the company an additional $37.8 billion.

Also in the weekly report, the Fed said the portfolio of certain assets it took over from Bear Stearns is now estimated to be worth $26.80 billion as of Sept. 30, down from $29.53 billion as of June 30. Maiden Lane LLC holds the portfolio of assets.

The report comes as Washington policymakers battle the worst financial crisis since the stock market crash of 1929.

So far this year, 15 banks have failed, compared with three last year.

Last week the Bush administration announced it would inject up to $250 billion in banks - in return for partial ownership stakes. The government hopes that banks will use the capital infusions to rebuild their reserves and bolster lending to customers.

Investment houses in March were given similar, emergency-loan privileges as commercial banks after a run on Bear Stearns pushed what was the nation's fifth-largest investment bank to the brink of bankruptcy.

The identities of commercial banks and investment houses that borrow are not released. Commercial banks and investment companies now pay 1.75 percent in interest for the loans.

Since the Bear Stearns debacle in March, the Fed has taken a series of unprecedented steps to get lending - the economy's oxygen - flowing more freely again. The central bank has repeatedly tapped its Depression-era authority to be a lender of last resort not only to financial institutions, but also to other types of companies.

Critics worry the Fed's actions could put billions of taxpayers' dollars at risk.


_________________________________________
END of Associated Press Release


[b]If this doesn't tell you that we need
to get out of both the U.N. and NATO
then I just don't know what does.
I rest my case and everybody, do the
right thing on Election Day. Your very
life and family depends on it.