November 15, 2007 (LPAC)--With the most recent big credit writedowns and losses among the big banks coming from HSBC and Barclays, and Citigroup now having to pay 2% above the Treasury interest rate in order to borrow, the Federal Reserve made another huge injection of short-term money into the banking system today. Once again, the attempts in financial press to claim that "the worst bank losses may be behind us," were swept away by the signs of urgent need for Fed money-pumping.

"This a 'free-fall' level of money printing," economist Lyndon LaRouche commented of the Fed's actions. "This is an echo, though under different circumstances of the desperate money-printing efforts of the Reichsbank in Weimar Germany, during the hyperinflationary blowout year of 1923."

According to Reuters, the Fed's $47.25 billion bailout injection today was the biggest since Sept. 19, 2001, after the terror attacks, when markets were nearly in free-fall and short-term lending rates were shooting upwards. Reuters reported that overnight lending rates were rising again in recent days up in both the United States and Europe. Citicorp had to pay the highest interest rate in its history to issue a bond, 6.125%.

Big banks continued to report big losses. The City of London giant Barclays Bank took a writedown of $2.7 billion in mortgage-based assets for the third quarter. HSBC, the biggest bank in Europe, is writing off $38 million every day on average!

And the U.S. commercial paper market shrank again, for the third consecutive week.