Public Cost Of Bailout Much Higher Than Previously Thought...

Discussion in 'Politics' started by paulitician, Dec 1, 2011.

  1. paulitician
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    paulitician Platinum Member Supporting Member

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    The Federal Reserve doled out a staggering 7.77 trillion dollars in secret loans in an effort to stabilize banks during the financial crisis — cheap money from the public purse that the banks subsequently lent out at higher rates for a profit of $13 billion dollars, Bloomberg News reports.

    Although Bloomberg has been publishing findings from its analysis of over 29,000 pages of documents since August, the true magnitude of the central bank’s intervention during the economic crisis has only come to light in recent days.

    “Add up guarantees and lending limits,” the Bloomberg report states, “and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”

    The $7.77 trillion figure is distinct from the money given to banks under the Treasury Department’s $700 billion Troubled Asset Relief Program bailout endeavor, which was approved by Congress.

    At the time of TARP’s passage, members of Congress were unaware of the extent of the Fed’s behind-the-scenes lending activity.



    Read more: Secret Fed Loans | Congress Unaware | TARP Vote | The Daily Caller
     
  2. paulitician
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    paulitician Platinum Member Supporting Member

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    Didn't even need to spend more Taxpayer Dollars. What a shame. It's criminal.
     
  3. editec
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    editec Mr. Forgot-it-All

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    Promising to BACK UP TOXIC ASSETS if they failed is what they mostly did, I'm informed.

    Byt doing that I think the Treasury and FED actually saved the world economy from a COMPLETE MELTDOWN.

    I'm not thrilled with it, and really think that the six big commercial banks ought to to be OWNED by the US taxpayer, now, but that is another story.

    I ALSO think the US taxpayers ought to OWN AIG and General Motors, too since the taxpayers paid more than their market CAPs to save them both.

    You see, I'd truly like to see CAPTIALISM in action.

    What we have, folks, is NOT capitalism, its socialism for the superrich and captialism for the 99% (or more ) of us who are NOT insiders.
     
    Last edited: Dec 1, 2011
  4. paulitician
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    paulitician Platinum Member Supporting Member

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    Good points but it's actually just Socialism/Progressivism period. We are now witnessing 'Generation Gimme.' Things are gonna get much worse down the road.
     

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