The Fed audit - $16 trillion in secret loans

[shabby]

http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

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.

For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. Moreover, JP Morgan Chase served as one of the clearing banks for the Fed's emergency lending programs.

Damn those socialist rich people, always helping themselves.

 

[wirednuts]

its just money. the only reason nobody lets us default is because we'll shoot em

 

[BoberFett]

The big question becomes, what were the payback terms on these loans and what were they used for? Were these short term loans used to provide liquidity and smooth out the bumps? Or were they used to gobble up the competition or boost profits by having a near zero cost loan?

 

[glenn1]

Bernie Sanders doesn't give a crap about spending trillions of dollars, in fact he's all for it so long as it's for the people he likes - that's all this is about, he just wants control over how the money is spent.

 

[werepossum]

Of all the things in which a company can invest, government is the most profitable.

 

[Jhhnn]

Bernie Sanders doesn't give a crap about spending trillions of dollars, in fact he's all for it so long as it's for the people he likes - that's all this is about, he just wants control over how the money is spent.

Don't worry- it'll all trickle down to the rest of us, honest.

Very, very few people have the vaguest idea just how close we came to complete financial meltdown because of the sheer incompetence & greed of Greenspan's FRB, the Bush Admin & the Repub Congress of 2003-2007. No idea at all.

The guys at the top have been bailed out, and now it's the working man's turn... for austerity, natch. for more unemployment & reduced benefits, for a nice, slow, hard screw job rather than a sudden painful penetration...

It's the same way it's played out in Japan, which was the template for our own credit bubble in real estate. It's been over 15 years, and they really haven't recovered, so I doubt our own experience will be much different...

 

[werepossum]

Don't worry- it'll all trickle down to the rest of us, honest.

Very, very few people have the vaguest idea just how close we came to complete financial meltdown because of the sheer incompetence & greed of Greenspan's FRB, the Bush Admin & the Repub Congress of 2003-2005. No idea at all.

The guys at the top have been bailed out, and now it's the working man's turn... for austerity, natch. for more unemployment & reduced benefits, for a nice, slow, hard screw job rather than a sudden painful penetration...

It's the same way it's played out in Japan, which was the template for our own credit bubble in real estate. It's been over 15 years, and they really haven't recovered, so I doubt our own experience will be much different...

It's pretty clear that people who believe that only Greenspan's FRB, the Bush Admin & the Republican Congress of 2003-2005 brought us to this point have nothing BUT vague ideas. Well, vague ideas and foaming, ankle-biting rage.

 

[LegendKiller]

This isn't news. These were short-term loans, often overnight, for liquidity purposes during the worst of the credit crunch.

 

[werepossum]

This isn't news. These were short-term loans, often overnight, for liquidity purposes during the worst of the credit crunch.

They are quite possibly good government as well - IF they are all paid back with interest. All too often huge and/or secret government loans seem to be paid back with subsequent government grants. I'll reserve judgment while remaining suspicious.

 

[LegendKiller]

They are quite possibly good government as well - IF they are all paid back with interest. All too often huge and/or secret government loans seem to be paid back with subsequent government grants. I'll reserve judgment while remaining suspicious.

As I said, these were short-term, interest bearing loans, often REPO loans that were collateralized. They were fully repaid from all evidence reported. Dozens of banks took advantage and rolled maturities or used it repeatedly within days/weeks/months of the last use, which is why the number is huge, the same loans were created many times during the worst periods.

Bernie is frothing at the mouth in faux righteous indignation to drum up support and zealousness in the proletariat. It's nothing more than political theatre.

 

[Modelworks]

Read the book The Creature from Jekyll Island . How anyone thought that an organization run by the rich to look after the rich would make rules that benefit the general public the world may never know. Welcome to the USA where you can screw over the people and be appointed secretary of the treasury.

 

[LegendKiller]

Read the book The Creature from Jekyll Island . How anyone thought that an organization run by the rich to look after the rich would make rules that benefit the general public the world may never know. Welcome to the USA where you can screw over the people and be appointed secretary of the treasury.

That book has already been debunked many times. As with most conspiracy theory books, it takes kernels of truth and warps them. The original idea behind the Fed wasn't even what was proposed to Congress and what was adopted by Congress wasn't even what was proposed. What was adopted was then changed several times.

 

[Jhhnn]

It's pretty clear that people who believe that only Greenspan's FRB, the Bush Admin & the Republican Congress of 2003-2005 brought us to this point have nothing BUT vague ideas. Well, vague ideas and foaming, ankle-biting rage.

Content-less post...

Utterly unsurprising...

Here it is again, the "Ownership Society"-

http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html

http://www.relfe.com/Images/derivatives2.gif

To hear Repubs & their hangers-on tell it, nobody could see the crash coming, absolutely nobody, particularly not those tasked with maintaining the health of the financial sector, like these guys-

http://economicsofcontempt.blogspot.com/2008/03/cutting-through-red-tape-with-chainsaw.html

http://georgewashington2.blogspot.com/2011/04/banks-are-more-highly-leveraged-than.html

Couldn't see it? More like ideologically induced willful blindness...

The only reason it could fall down was because it had been allowed to soar much too high by people who could have acted differently...

Here's your quiz- see if you can get any of it right-

http://www.ritholtz.com/blog/2011/07/crisis-causation-final-exam/

 

[PeshakJang]

Content-less post...

Utterly unsurprising...

Here it is again, the "Ownership Society"-

http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html

http://www.relfe.com/Images/derivatives2.gif

To hear Repubs & their hangers-on tell it, nobody could see the crash coming, absolutely nobody, particularly not those tasked with maintaining the health of the financial sector, like these guys-

http://economicsofcontempt.blogspot.com/2008/03/cutting-through-red-tape-with-chainsaw.html

http://georgewashington2.blogspot.com/2011/04/banks-are-more-highly-leveraged-than.html

Couldn't see it? More like ideologically induced willful blindness...

The only reason it could fall down was because it had been allowed to soar much too high by people who could have acted differently...

Here's your quiz- see if you can get any of it right-

http://www.ritholtz.com/blog/2011/07/crisis-causation-final-exam/

So nobody really has any idea about what happened, except you of course, because you read a few articles and blogs.

How many trees have you destroyed with all that hacking?

 

[NoStateofMind]

Don't worry- it'll all trickle down to the rest of us, honest.

Very, very few people have the vaguest idea just how close we came to complete financial meltdown because of the sheer incompetence & greed of Greenspan's FRB, the Bush Admin & the Repub Congress of 2003-2007. No idea at all.

Are you ignorant enough to think this was all Republicans ideas and implementation? Partisan politics had nothing to do with it. Greed encompasses both parties.

 

[Jhhnn]

So nobody really has any idea about what happened, except you of course, because you read a few articles and blogs.

How many trees have you destroyed with all that hacking?

Another zero content post...

Again, completely unsurprising.

Alleging that I'm alone flies in the face of the links I've posted, but helps you feel good believing in lies, I'm sure.

 

[Jhhnn]

Are you ignorant enough to think this was all Republicans ideas and implementation? Partisan politics had nothing to do with it. Greed encompasses both parties.

Whose ideology supplanted that of the New Deal beginning with Reagan? Integrated financial giants carrying inherent conflicts of interest, ripe for exploitation? Self regulated banking? cutting red tape? "innovative" financial products? allowing enormous and obviously dangerous leverage by those same financial giants? Touting the "Ownership Society" to gain re-election to the presidency?

Obviously, the truth will elude you, too, because you believe. Despite all the evidence, you still believe, and probably will the day you die.

 

[Dr. Zaus]

The OP is a LIE!

"
Its not some sort of secret, it has been disclosed by the Fed in their annual reports as required by law.

FORTUNE -- The bailout of the financial system is roughly as popular as Wall Street bonuses, the federal budget deficit, or LeBron James in a Cleveland sports bar. You hear over and over that the bailout was a disaster, it cost taxpayers a fortune, we didn't really need it, it didn't work, it was a failure. It has become politically toxic, which inhibits reasoned public discussion about it.

But you know what? The bailout, by the numbers, clearly did work. Not only did it forestall a worldwide financial meltdown, but a Fortune analysis shows that U.S. taxpayers are coming out ahead on it -- by at least $40 billion, and possibly by as much as $100 billion eventually. This is our count for the entire bailout, not just the 3% represented by the massively unpopular Troubled Asset Relief Program. Yes, that's right -- TARP is only about 3% of the bailout, even though it gets about 97% of the attention.

http://finance.fortune.cnn.com/2011/07/08/surprise-the-big-bad-bailout-is-paying-off/ [cnn.com] Fortune Magazine Article
"
Source:
http://politics.slashdot.org/story/...dot+(Slashdot)&utm_content=Google+Feedfetcher

 

[LegendKiller]

So nobody really has any idea about what happened, except you of course, because you read a few articles and blogs.

How many trees have you destroyed with all that hacking?

Most people who have researched the problem know, more or less, what caused it. Only you and a few select intellectually challenged individuals have no idea what happened.

I knew in 2004/5 what was happening, didn't you?

 

[Jhhnn]

Most people who have researched the problem know, more or less, what caused it. Only you and a few select intellectually challenged individuals have no idea what happened.

I knew in 2004/5 what was happening, didn't you?

They're *ideologically opposed* to knowing the truth. Their core beliefs won't allow them to do so, and Righties never, under any circumstances, ever examine their core beliefs. It's called denial.

Alcoholics exhibit the same behavior wrt drinking- it's not John Barleycorn, it's always something, anything else, no matter how obvious it might be to an outside observer... Whenever anybody says anything about it, they just dive deeper into the bottle.

 

[chucky2]

Oh the ironing....

 

[Jhhnn]

Oh the ironing....

Another poster with nothing to say, other than to offer derision- it's part of denial... expected behavior.

 

[Dr. Zaus]

Most people who have researched the problem know, more or less, what caused it. Only you and a few select intellectually challenged individuals have no idea what happened.

I knew in 2004/5 what was happening, didn't you?

I knew in 2003 when I read "The Great Unraveling: Losing Our Way in the New Century" Right there Paul Krugman explains that we where on our way to trading a .com bubble for a housing bubble.

He also mentioned that the AMT would cost trillions to prop up and eventually turn into a back-door flat tax.

I've got $20 that says that comes true in the next decade.

also, my TVM formula says (given only 3% inflation) that in about 18 years every family of 4 with two workers making the poverty level will be paying the AMT even if it's frozen at today's levels (and doesn't sunset back to 40k in deductions instead of 78k in 2012 as its supposed to)

 

[chucky2]

Another poster with nothing to say, other than to offer derision- it's part of denial... expected behavior.

Deny what? I'd like nothing better than for every politician to be machine gunned into a pink mist - on second thought, that's perhaps getting off too easy. Let me sum up your posts so you don't need to waste your time here anymore:

Republicans/Conservatives bad RAWR!!!!!1111!!!, Democrats <slurp slurp slurp>....

Okey dokey, no need for more Jhhn posts, got that covered.

Chuck

 

[NoStateofMind]

Whose ideology supplanted that of the New Deal beginning with Reagan? Integrated financial giants carrying inherent conflicts of interest, ripe for exploitation? Self regulated banking? cutting red tape? "innovative" financial products? allowing enormous and obviously dangerous leverage by those same financial giants? Touting the "Ownership Society" to gain re-election to the presidency?

Obviously, the truth will elude you, too, because you believe. Despite all the evidence, you still believe, and probably will the day you die.

So you are ignorant. Too blinded by partisan politics to see that both sides are guilty of financial rape. Your ideology allows for this to happen once again because you believe (incorrectly) that if the left was the only party none of this would have happened. You delude yourself with such pie in the sky notions and thus become that which you loath (ideologically induced willful blindness).