http://www.larouchepac.com/news/2008...-new-year.html

December 16, 2008 (LPAC)--The Fed's Federal Open Market Committee announced today that it would cut the target range for the Fed Funds rate to "0% to 1/4%" from the current 1.00%, and cut the discount rate by 3/4 points to 0.5%, from the current 1.25%. In addition, the Fed states that "The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability." In addition, the Fed said it would "purchase large quantities of agency debt and mortgage-backed securities, and will expand those purchases as conditions warrant," and is considering purchasing longer-term Treasury securities. Early next year, it will implement a new Term Asset-Backed Securities Loan Facility, and will consider other ways of using its balance sheet to further support the markets.

Over the past year, the Fed has issued $1.8 trillion in loans through its Term Auction Facility, and $1.4 trillion through its Term Securities Lending Facility, and additional hundreds of billions of dollars in loans through the myriad lending schemes set up in recent months. Overall, the Fed, the Treasury and the FDIC have issued well over $8 trillion in purchases, loans, and guarantees, as the system disintegrates, and today's actions continue that trend.

The result is that the banks are still hopelessly bankrupt, the Fed is hopelessly bankrupt, and the U.S. Government is hopelessly bankrupt, while the bill for this swindle is being passed on to the hopelessly bankrupt taxpayers. Just call it the Fed's way of wishing you a Happy New Year you will never forget, and perhaps not survive.