Check out the following which shows the $$$ amount borrowed by US banks from the Fed through Dec 2007; the spike marks the Savings & Loan Crisis at the end of the 1980s with borrowing maxing out at $8b.On Gateway Pundit, there's an additional chart, showing America's "adjusted monetary base," a measure of the money supply, from the end of the First World War to the present.
Now take a look at the following chart. It is the same graph as above, but updated through the beginning of November ‘08.
This might be less scary if the Fed wasn’t creating money out of thin air and at the same time accepting assets of questionable - and deliberately undisclosed - quality as collateral from banks.
Asks mr. Hoft: "Could this thriller possibly have a happy ending?" One is terrified of what an honest answer would be...