TARP Two

[Lamplighter]

TARP two - I thought tw would be writing about the $7.7 trillion
the Fed Reserve loaned to the banks at 0.01% interest.


Bloomberg News
Nov 28, 2011
U.S. Feds committed 7.7 trillion to rescue financial system

The Feds and the banks fought tooth and nail to prevent the release of the information.
After reading the article one can understand why.
The article is quite long and detailed and an eye opener.

John Stewart (The Daily Show) did a bit on it tonight... funny, but scary.

The universe is only 13.7 billion years old

[Lamplighter]

The headlines in the above link may appear to be at odds with the actual article below.
The former is the ($7.77 trillion) amount the Fed loaned to banks at 0.01 % interest.
The latter is the ($13 billion) profits the banks made using those funds
to buy US Treasury bonds at market rate of 3+ % interest.

If you care anything about what went on at the end of 2008 with
Treasury Secretary Paulson, the buy-outs of the banks, and the
role of Congress in all this, do read this article

Bloomberg
Bob Ivry, Bradley Keoun and Phil Kuntz
Nov 27, 2011

Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress
The size of the bailout came to light after Bloomberg LP, the parent of Bloomberg News,
won a court case against the Fed and a group of the biggest U.S. banks
called Clearing House Association LLC to force lending details into the open.

The Fed didn’t tell anyone which banks were in trouble so deep
they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day.
Bankers didn’t mention that they took tens of billions of dollars in emergency loans
at the same time they were assuring investors their firms were healthy.
And no one calculated until now that banks reaped an estimated $13 billion of
income by taking advantage of the Fed’s below-market rates,
Bloomberg Markets magazine reports in its January issue.

While Fed officials say that almost all of the loans were repaid and there have been no losses,
details suggest taxpayers paid a price beyond dollars as the secret funding
helped preserve a broken status quo and enabled the biggest banks to grow even bigger.

[tw]

Originally Posted by Lamplighter

I thought tw would be writing about the $7.7 trillion the Fed Reserve loaned to the banks at 0.01% interest.

This type recession intentionally created by banks and other financial institutions is the worst type. It takes years to resolve. And more years of unemployment. Unemployment created by fiscal mismanagement on and before 2007 may be finally starting to diminish. Recessions intentionally created by government and their ‘welfare enriched’ cronies take that long to resolve.

To avert 40% unemployment, only solution was to dump liquidity into systems that created this recession. That lesson was well learned from 1929. Unfortunately, it is not fair to put money into the hands of the nation's crooks. But if not done, then 40% unemployment would exist in 2012. By making that mistake in 1929, then unemployment was that massive in 1933. We don't have that massive unemployment due to TARP.

Next should be criminal prosecution of glorified tellers who think they deserve more than $500,000 annually. These bean counters, their education, political lies, and their egos created this recession. We had no choice but to dump massive liquidity on them. Now is when prosecution of these people should be happening. They are nothing more than upscale bank tellers. But they are also well connected to wacko extremists in government who created this recession. And thanks to the Supreme Court, can now spend as much as they want to buy politicians.

We had no choice but to give these devils more money. Now that we should have weeded out the devils, our wacko extremists, well, how many people went to jail because they intentionally created the California energy crisis to enrich themselves? Why did the state of Oklahoma have to embarrass Harvey Pitts by filing suit against Enron? Unfortunately too many Bernie Madoffs are protected by wacko extremists because the Supreme Court now says you can spend as much as you want to buy politicians.

Why did First Energy almost create another Three Mile Island? Because they arraigned a $600,000 campaign fund raiser for Bush/Cheney.

Well, another TARP has apparently averted another potential 1929; this time in Europe. A massive recession created by the most corrupt trained in an obvious lie: the purpose of a business is only profits.

TARPs, ironically, are criticized by wacko extremists who hope we all forget who created this economic mess. TARP was a necessary evil due to ‘economic stimulus’ created mostly after 2000. If extremists where driven from government, then these most corrupt would be on trial in mass numbers. But Congress is even still withholding funds from the SEC. Wacko extremists know who butters their bread.

TARP is what was unfortunately necessary to avert 40% unemployment. Euro countries were threatened by the same problem.