As the banking crisis intensified in the Fall of 2008, with major banking institutions assuming, or on the verge of assuming, the classical ‘snorkel’ position (aka ‘underwater’ status), the Federal Reserve ran quickly to the rescue with secret liquidity lifelines” (Bloomberg 8-22-11).
The Fed substantially eased some important collateral rules for banks, “meaning that banks that could once borrow only against sound collateral, like Treasury bills or AAA-rated corporate bonds, could now borrow against pretty much anything – including some of the mortgage-backed sewage that got us into this mess in the first place…. ‘All of a sudden, banks were allowed to post absolute [expletive deleted] to the Fed’s balance sheet,’ [according to] the manager of the prominent hedge fund.” (Source: Bailout Hustle, Matt Taibbi).
The Federal Reserve ‘created’ various “facilities” to fire-hose liquidity out to major domestic and foreign banks, insurers, and brokerage firms, to include: Primary Dealers’ Credit Facility, Term Securities Lending Facility, Temporary Liquidity Guarantee Program, Commercial Paper Funding,Term Auction Facility, Public Private Investment Program
And, here we go – from the top (Bloomberg Nov 28, 2011) :
“Morgan Stanley, facing a crisis of confidence after the fall of Lehman Brothers Holdings Inc., got a $9 billion injection from Japanese bank Mitsubishi UFJ Financial Group Inc. and agreed to take a $10 billion bailout from the U.S. Treasury to shore up capital. As hedge-fund customers pulled funds out of the New York-based firm, it plugged the hole with $107.3 billion of secret loans from the Federal Reserve’s Primary Dealer Credit Facility and Term Securities Lending Facility, set up earlier in the year to supply brokerage firms with emergency financing.”
Peak amount of Debt on 9/29/2008: $107B
………………………………………………………………
The Leviticus 25 Plan does not seek to ‘interrupt’ or reverse any of the special relationships that have developed in the Fed’s financial sphere. It only seeks to level the playing field by providing U.S. citizens the same access to direct liquidity flows that the big banks enjoyed ‘in their time of need.’
The Leviticus 25 Plan proposes one additional upgrade to the Fed’s liquidity lines: A U.S. Citizens Credit Facility.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (11996 downloads )