Tuesday, October 07, 2008

Mavericky behavior alert!

The Federal Reserve Board announced today the creation of the Commercial Paper Funding Facility (CPFF), to help provide money to large corporations and companies. Fed officials didn't say how much commercial paper, which hundreds of companies use to finance payrolls and meet other cash needs, it plans to purchase. The program will continue to run till April 30, 2009.

A bottomless cash withdrawal mechanism, I betcha'.

The Federal Reserve said yesterday that it would start to pay interest on bank deposits for the first time and double its auctions of cash to banks to as much as $900 billion by year-end.

These two moves are over and above the $700,000,000,000.00 bailout.

Say it ain't so, but 1 million Joe six-pack Americans lost homes over the last two years and another million will lose their homes over the next 12 months. I am yet to see a single coordinated initiative on their behalf.

Meanwhile, life goes on as usual for the million dollar bonus CEO's as is evident from this report:
Less than a week after the federal government offered an $85 billion bailout to insurance giant AIG, the company held a week-long retreat for its executives at the luxury St. Regis Resort in Monarch Beach, Calif., running up a tab of $440,000. The executives spent $200,000 for rooms, $150,000 for meals and $23,000 for the spa.

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