CNN Money: Fed, ECB offer aid for global financial system

[Miss Annie]

Here we go, the beginning of the European bailout that we the taxpayers are going to be responsible for!

Fed, ECB offer aid for global financial system
http://money.cnn.com/2011/11/30/news/economy/fed_ecb_dollar_liquidity/index.htm?iid=Lead

NEW YORK (CNNMoney) -- The Federal Reserve, acting with five other central banks, took further steps Wednesday to make it cheaper for banks around the world to trade in U.S. dollars.

The Fed -- along with central banks of the eurozone, England, Japan, Switzerland and Canada -- announced a coordinated plan to lower prices on dollar liquidity swaps beginning on December 5, and extending these swap arrangements to February 1, 2013.

The effort is meant to "ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," the Federal Reserve said in a press release.

Meanwhile, the People's Bank of China also announced a plan to increase liquidity Wednesday by lowering its reserve requirement ratio for financial institutions by half a percentage point. To top of page

[Miss Annie]

I know that there is still alot about things that I do not understand, especially in the monetary system.
Question : Would Congress have approved this bailout you think?
Question : Does Congress have to approve all the bailouts that the Fed dishes?
Question : If Congress does not approve what the Federal Reserve does,.... why then is the taxpayer responsible for that?

[Created4]

The Fed cannot spend tax revenues, only Congress can do that. I think what is happening here is that they are just "injecting liquidity" into the system by creating more money, and making it easier for banks to have access to it. The story earlier this week that they did this during TARP to the tune of some 7 trillion dollars, revealed after a 2 year FOIA lawsuit by Bloomberg and others, received a big yawn by most of the media. So my guess is that since no one besides the Judge even really talked about this, it gave them confidence to now start doing it globally.