Thursday, November 13, 2008
Fed's forex swap lines increase another $41 billion in latest week. Total now stands at $615 billion.
Fed continues to dole out dollars to foreign central banks (to be used by foreign financial institutions). Another $41 billion was handed out in the week ended November 13. The grand total so far is $615 billion. This now comprises nearly 30 percent of the Fed's balance sheet. These loans are uncollateralized and non-recourse. We let our guys fail but we are supporting foreign financial institutions and keeping the dollar weaker than where it would be if these dollar handouts were not happening. It is a ripoff to American taxpayers.
Access the Fed's weekly statement here.