And it is clearly the biggest “economic” news, by far, ever. Dwarfs the stories about the Great Depression. It’s so big, I don’t expect the MSM will ever really report on it. It’s incomprehensible to them.
The Federal Reserve, which I think has been under pressure to do so from a lawsuit (more on that later, probably) has disclosed its “emergency lending” activities in the wake of the 2008 debacle.
Included in the data are hundreds of billions of purchases of Mortgage Backed Securities (MBS’s) from various “primary dealers” (government privileged banks and lenders) – which is kind of unsurprising to those who have been paying attention – and…hold on to your hats….$8 trillion in loans to the European Central Bank.
That’s $8 trillion, with a ‘t’. If that’s really true, I mean if it’s confirmed and not just some kind of misprint. or. something. I don’t know, I’m just speechless.
The guys over at Zero Hedge will be dissecting this stuff for a while, so I recommend you read that blog often.
Mind-numbing. That’s all I can say. For now, anyway.
UPDATE: Drudge, citing this link, reports that the US will “bailout” the EU. I think the US already did. Nothing they could do from here could significantly add to what has already happened.
TENTATIVE CORRECTION: While the Zero Hedge article referred to “loans” to the ECB in an “emergency”, it is more likely that the $8 trillion figure is related to day to day liquidity swaps that are used to clear financial transactions. Doesn’t change the nature of the story overall, it’s still the Hugest Most Humongous Thing. I’ll continue to review the data and reports about the data as we go along.