I am going to refrain on commentary on this other than to say that the recent audit of the Fed has revealed something incredible. It details perhaps the single most significant action taken by the United States (well, the Fed, actually) since dropping the bomb, if not ever. Read on and tell me if I am exaggerating:
The Federal Reserve has bought the world.
From Senator Bernie Sander’s web site:
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”
The GAO report that buries the lede amongst other incredible reports of conflict of interest and other scary stuff.
Try to realize the significance of that number, 16 Trillion: It has never existed in the non-fiction world before when followed by the word dollars.
well.. at least on one balance sheet!
Try to realize the significance of that number…
I tried once, in a diary some time ago.
Once more Sanders hits the nail squarely on the head.
This is the sort of stuff that should reduce the already low Congressional approval rate down to the point of being lower than the approval rate for Leprosy.
It also is a stiff reminder of why Bernanke is no friend to those of us working folks.
One wonders why the Fed bought toxic assets based on mortgages that won’t get paid, instead of just paying those mortgages, and thereby removing the toxicity?
Although I didn’t see the above idea in the MSM, I have certainly be trumpeting the idea since day 1. If I can think of it, you know it’s been kicked around at the Fed and rejected.
This can only mean that the concerted choice to support the wealth while subjecting the American worker to a short, sharp shock to make our labor market more competitive. I just don’t see how you can interpret such large scale, imbalanced actions. Can someone please question Bernanke on that? I’d love to hear the justification. (Is it REALLY just because of Rick Santelli’s rant?)
I don’t see where he gets $16 trillion in that report. Maybe I missed it, but I only count $2.7 or so trillion, most of which is already paid back. Can anyone else find in the report where he arrives at $16 trillion?
If you read past the charts, it describes the ‘windows’ and ‘special programs’ through which this money was lent. They have nifty names like TAF, Dollar Swap Lines, TLSF, Primary Dealer Credit Facility, etc, etc, etc. Since actual numbers for a few of these programs are not included in the public copy, once can assume Senator Sanders has access to a more complete report which does include these numbers.
Which actual numbers aren’t included in the public copy?
Once more Sanders hits the nail squarely on the head.