How Did FEDS rescue AIG?

[halsey02]

The following is taken from chetdet.com

3. I just wonder where the money comes from. Does the Fed hold hundreds of billions of dollars in readiness to rescue failed banks? I don't think so.

4. The money used is "created" through entries in account books. No cash or dollar notes are issued or even printed. Like a magician, the Fed make money from invisible sources.


http://test.chedet.com/che_det/2008/09/financial-turmoil.html#more

Question : How did the FEDS rescue AIG?, by passing book entries, as stated above?

Economist out there?

 

[madix]

Money comes from US Treasury.

 

[halsey02]

Money comes from US Treasury.

US Treasury gets their money from Temasek? ha ha ha OK!, US Treasury gets their income from taxes, etc.., it is like a dog chasing its tail,till it gets dizzy & collapse!

Is Dr.M, right on his comment?

 

[Agoraphobic]

Heard on a radio talk show today this comment by the host, ".... even those with very sophisticated economics background are dumbfounded .... "

Agree? Er, ya. I supose, I think.

My guess is its the money they found in Saddam Hussein's vault. Sure came in handy. Hell, it had to come from somewhere! Anywhere! WTF.

Cheers!

 

[The MilkMan]

all are just numbers and figures in electronics. nothing physical.
these are some of the tricks and games played.
think they will raised those cash by issuing more debts bills and bonds.