New Cracks Appear: Time is Running Out for a Cornered Federal Reserve?

• New Cracks Appear: Time is Running Out for a Cornered Federal Reserve
  by http://thewealthwatchman.com/  
  Fed Panic
  Brothers, a few weeks ago the Fed held a closed-door, emergency meeting. I’d written about this meeting just before it happened, but wasn’t able to immediately follow up on it with what was likely discussed.  I’d like to take a moment today to go over what they likely dealt with, because it speaks volumes about what we are now facing on the world economic scene.
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  Several things have just come to light in recent days which spell huge trouble for the financial system, and for the US Dollar.  While these events are forcing the Fed to now act out of desperation, this recent headline in particular, telegraphs that something very serious lies ahead.
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  Fed Poised to Relinquish Crisis Tools It Used to Bail Out AIG
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  Uh oh. Folks…that headline should cause you to sit up and pay attention.
  Remember: the only thing that forestalled a complete derivative meltdown in 2008 was TARP, the $700 billion dollar deal that Congress was basically forced into signing. When a bank failed in that environment, it triggered a payout, which then caused other banks to be in dire need of liquidity themselves. It fed on itself, and it would’ve taken out the entire banking system, without the huge taxpayer swindle of TARP.
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  TARP allowed AIG, and other banks, to meet emergency demands for liquidity & cash based upon their need as the daisy chain of credit default swap ‘margin calls’ were being made.  It bought them some time.
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  However, the Fed will not now be able to do that for the next AIG or Bear Stearns. Here’s why, via Bloomberg:
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  “Under the Fed’s revised authority, it would only be able to save firms in a broad-based scenario, meaning it must rescue at least five entities at the same time, according to a statement released by the central bank. The change is meant to prevent the Fed from bailing out a single company.”
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  Whoa. Read that again, and think for a moment about what this means. It means the next time one or two financial institutions are about financially fail, there will not be a TARP 2 to pull them back from the brink!
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  I’ve cried out from the rooftops for over 16 months now…the next time the financial crisis returns, there will be no bailouts! Bailouts were the banksters’ first quick fix, but they will not be repeated. The banks have signaled this so many times, and this new announcement about revoking Fed powers for singular bailouts should be screaming at you that they know what is coming, and they are now removing themselves from ‘responsibility’, and blame.
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  The banksters have a new ‘solution’, a new “template” for trying to get out of disaster. They even told you what that new template was going to be after they used it…
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  read more.

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