More credence for RP: Feds pledge 7.7 trillion more to banks/credit ease [2008]

[freefromchains]

http://www.bloomberg.com/apps/news?sid=an3k2rZMNgDw&pid=newsarchive

How can people not see that Ron Paul has been warning us, educating us, and teaching us on the Fed!

[Kludge]

This is stupid. Why bother continuing to pretend we have private banks? Virtually every aspect of banks and even credit unions are either influenced or dictated outright by the gov't. The financial institutions can't meet the government's regulatory demands, so they fund them day-to-day so they aren't deemed insolvent. The gov't takes on massive risks -- risks too risky for private investors. Not only do the banks want to dump the TARP assets, but the private investors aren't willing to pay even what the banks need to stay solvent.

These loan buyout/guarantee amounts are utterly insane. The largest bank in the US (by assets) is BAC. $2.2b in assets to cover losses, and around $2t in liabilities. There are only two other major banks which can compete with the amount BAC holds. JPM & Citi, each also holding >$2b in assets (it tends to hold true that if you take the asset amount and multiply by 1000, you'll get their amount of liabilities held +-15%). Wells Fargo has ~$1.3b in assets, and all other banks have <$1b in assets -- only 7 US banks hold >$500m in assets, so how is it even possible to have $7.7t pledged to banks?

The only thing I can think of is the Bloomberg number being wildly inflated.


This is from 2008... Derp :x

[JoshS]

This is from 2008...

[freefromchains]

Opps sorry meant to link to this article that references the 7.7 trillion:

http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html