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View Full Version : TARP bill over 23 trillion yes 23 trillion! Video MSNBC




Hamer
02-08-2010, 11:22 AM
I was shocked that this aired on MSNBC but this was a great watch.

YouTube - FED GAVE Banks Access to 23.7 TRILLION DOLLARS NOT $700 Billion! (http://www.youtube.com/watch?v=lDJc0PZV-Bk&feature=player_embedded#)

erowe1
02-08-2010, 11:36 AM
Thanks for this. Great video.

But if I understood it correctly, it doesn't say that TARP itself includes $23.7 Trillion of spending, but that the sum total of all of our bank bailouts including what is done by the Fed apart from any passage of legislation by Congress, amounts to that much, and that TARP is a mere 2% of the total.

It's a great point to emphasize, though. We have a great opportunity right now while so many Americans resent TARP, where we can point out that making tax payers bail out banks much like what TARP did is something the Federal Reserve does continuously by its very nature without Congress even voting on it.

bossman068410
02-08-2010, 12:51 PM
Wow

Hamer
02-08-2010, 02:17 PM
Thanks for this. Great video.

But if I understood it correctly, it doesn't say that TARP itself includes $23.7 Trillion of spending, but that the sum total of all of our bank bailouts including what is done by the Fed apart from any passage of legislation by Congress, amounts to that much, and that TARP is a mere 2% of the total.

It's a great point to emphasize, though. We have a great opportunity right now while so many Americans resent TARP, where we can point out that making tax payers bail out banks much like what TARP did is something the Federal Reserve does continuously by its very nature without Congress even voting on it.

Well it is really all TARP because it is more bailouts, TARP is used to hide the fact that it is much more than 700 billion. Point well taken though.

Zippyjuan
02-08-2010, 02:47 PM
Highly misleading. The way you get to $23 trillion is to add up all the loan guarantees and securities the Fed and Treasury agreed to back. In order to have it cost $23 trillion, each and every one of those would have to go bad. Most of those guarantees have since expired.

The video does not explain what the programs are but just shows the letter abreviations for them.
1) TALF- Term Asset Backed Securities Loan Facility - issued security backed loans -up to $1 trillion available in exchange for only the highest rated securities.
http://en.wikipedia.org/wiki/Term_Asset-Backed_Securities_Loan_Facility

Eligible collateral
Eligible collateral will include U.S. dollar-denominated cash ABS that have a long-term credit rating in the highest investment-grade rating category from two or more major nationally recognized statistical rating organizations (NRSROs) and do not have a long-term credit rating of below the highest investment-grade rating category from a major NRSRO. Synthetic ABSs do not qualify as eligible collateral.[3]


Program expires June of this year.

2) TSLF- Term Securities Lending Facility- similar to the above but loans made are in exchange for government securities such as Treasury Notes. You give the Fed $10,000 worth of T-bills and they will loan you say $9,000 dollars (minimums are $10 million). This program ended February 1st. http://www.newyorkfed.org/markets/tslf_terms.html

3) CPFF- Commercial Paper Funding Facility- mostly for Investment banks. Program ended April 30th, 2009. http://www.newyorkfed.org/markets/cpff_terms_conditions.html

4) TAF- Term Auction Facility- auctioned loans to banks in 28 or 84 day loan packages. The auction process determined the interest rate- based on demands for the loans. http://www.federalreserve.gov/monetarypolicy/taffaq.htm
$25 billion in these loans were issued in December. http://www.usatoday.com/money/economy/2009-09-24-fed-lending_N.htm