Forum Post: Fed "Secrecy" Slowly Falls...
Posted 12 years ago on Nov. 28, 2011, 11:27 a.m. EST by ProAntiState
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Fed "Secrecy" Slowly Falls...
From Bloomberg.... http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
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.
Why did they have to "fight", and what were they "fighting"?
The rest of this article makes it sound like the government was interested in the little guy on the street, and Bloomberg fought the good fight with the government against those e-vile bastards at The Fed.
Nothing could be further from the truth.
Oh, it's true that Bloomberg sued. And it's true that they won.
But it's false to assert that government and The Fed are on opposite sides of this issue. They most-certainly are not.
Is this news? Our government has been propagating this kind of corporate socialism for a long time. The banks took huge risks, they lost money and now they are needy. It is up to the US taxpayer to share the wealth with the neediest corporations. Do you have any idea what labor costs are these days on Wall Street? The communist motto was from each according to his abilities to each according to his needs. The Wall Street gang's motto is from the hard working and responsible to the irresponsible, rapacious and well connected. Anyway, the Fed has been lending the banks money at practically zero interest, and then the banks buy US Treasuries at a higher rate of interest. They simply pocket the difference between the two rates of interest. Needless to say such generous conditions are not available to the 99%. Since the US taxpayer is on the hook for Treasuries, our government's debt, it is simply another transfer of wealth from taxpayers to the banks.