Aug

30

Where does the money come from when Central Banks throw money into the Banking/Sub Prime Crisis?

Filed Under mortgage 

Yankee Running Dog asked:


The European Central bank just threw in 348.6 Billion Euros on Dec 17 and the Fed just announced that there were $61 Billion in bids on its $20 Billion credit auction. Do they simply hit the printing presses or what?

Scented Floating Candles
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  • Can the central banks just print more money out of the sub-prime/liquidity crises currently?
  • Home loans with low down payments require PMI insurance, so why are banks losing money on sub-prime mortgages?
  • Sub-Prime mortgage instruments are not good investment instruments?
  • why do lenders lend money to sub prime borrowers?
  • why do lenders do sub prime mortgages know they are risky? (what are they gambling for?)?
  • Inflation, deflation, subprime mortgage crisis, & banks
  • Will those who lose their homes in Sub-Prime crisis be thrown in the lake of fire?

    • Comments

    No Responses to “Where does the money come from when Central Banks throw money into the Banking/Sub Prime Crisis?”

    1. RUDOLPH M on September 1st, 2009 7:24 pm

      The press and raise the press and raise the taxes aint goverment grand.

    2. ananamas on September 5th, 2009 4:13 am

      The economy was backed by worth of little history lesson back in order to stay on the 19th century most.