Fed Reserve Bank Comes to the Rescue and Piles on Liabilities

The "Real Time Economics" section in The Wall Street Journal has an overview showing how the assets (and liabilities) of the Fed Reserve Bank have grown since the start of this crisis. These assets no longer have to be marked to market values so there is no way to know what these are worth, but we do know how much cash the Fed let out. This ballooning letting out is what causes inflation.

I've broken out each additional burden the Fed Reserve has taken in separate charts below. Click to enlarge each chart.

Chart 1 - $0


Chart 2- add $48 billion for every day credit lines the Fed gives out


Chart 3 - add $508 billion to buy US treasuries; this is ongoing


Chart 4 - add $56 billion given to federal agencies


Chart 5 - add $237 billion to purchase mortgage-backed securities; new


Chart 6 - add $529 billion, direct lending starts (you notice how this has not happened before)


Chart 7 - repurchase agreements with companies looking for immediate liquidity


Chart 8 - $117 billion for AIG and Bear Stearns


Chart 9 - add $314 billion for central bank liquidity swaps with other central banks


Chart 10 - add $255 billion for more lending to banks


Chart 11 - add $5 billion to start TALF, Secretary Geithner's plan to buy up bad bank debt