PermanentSleep
04-27-2011, 08:24 AM
http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html
A newly-released study from the Congressional Research Service bolsters claims that the nation's largest banks profited off the Federal Reserve's financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.
^LOL, shouldn't they be citing Ron Paul and all the other Austrians for this little tidbit of wisdom?
The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.
The Fed released records under pressure in December and March that showed the extent of its largesse.
^^No mention whatsoever of Ron Paul or Campaign for Liberty.
Sanders said the spread between firms' borrowing rates and their lending rates to Uncle Sam amounted to "free money."
^No way!?!? Really??? /sarcasm
Warren Gunnels, senior policy adviser to Sanders. "The Fed was practicing socialism for the rich, powerful and the connected, while the federal government was promoting rugged individualism to everyone else."
^^They conveniently leave out any mention of the Government's involvement in the crisis in the first place.
A newly-released study from the Congressional Research Service bolsters claims that the nation's largest banks profited off the Federal Reserve's financial crisis-era programs by borrowing cash for next to nothing, then lending it back to the federal government at substantially higher rates.
^LOL, shouldn't they be citing Ron Paul and all the other Austrians for this little tidbit of wisdom?
The report reinforces long-held beliefs that the banking system in essence engaged in taxpayer-financed arbitrage: They got money for free, then lent it back to Uncle Sam while collecting juicy returns. Left out of the equation are the millions of everyday borrowers, like households and small businesses, who were unable to secure loans needed to tide them over until the crisis ended.
The Fed released records under pressure in December and March that showed the extent of its largesse.
^^No mention whatsoever of Ron Paul or Campaign for Liberty.
Sanders said the spread between firms' borrowing rates and their lending rates to Uncle Sam amounted to "free money."
^No way!?!? Really??? /sarcasm
Warren Gunnels, senior policy adviser to Sanders. "The Fed was practicing socialism for the rich, powerful and the connected, while the federal government was promoting rugged individualism to everyone else."
^^They conveniently leave out any mention of the Government's involvement in the crisis in the first place.