Forum Post: It wasn't just the 700 billion $$$ bailouts - The Fed lent out 16 trillion dollars and banks again profit
Posted 12 years ago on Oct. 9, 2011, 6:50 p.m. EST by powertothepeople
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from thom hartmann:
Bernanke lent out 16 trillion dollars worldwide.
This is more likely $100 billion cycled 160 times, but still:
Recently completed GAO audit of the fed shows 16 TRILLION dollars were loaned :
“An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.” ”
“The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.”
“The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.”
More links documenting this from all kinds of sources:
http://articles.businessinsider.com/2011-07-25/markets/29978854_1_debt-ceiling-full-report-money
http://www.ronpaul2012.com/2011/08/02/the-feds-16-trillion-debt-ceiling/
When the Wall Street and the World’s financial system was on the verge of collapse Main Street bailed out Wall Street. It’s time for Wall Street to repay the debt. Main Street need two things now, jobs and mortgage relief.
Proposal: Levy a 1/10th of one percent tax (0.1%) on all Wall Street transactions with one half to be used to rebuild infrastructure across the US thus creating jobs and one half to be used to reduce principal and re-structure mortgage debt for those who are upside down on their mortgages and are faced with losing their homes.
In Wall Street terms, 0.10% is ten basis points. This tax would be levied on all financial transactions normally associated with Wall Street, purchases or sales on any index that is registered with or regulated by the Security Exchange Commission (SEC), as well as those financial instruments which caused danger to the financial system such as Credit Default Swaps, Derivatives and Hedge Fund Trading.
It is time for everyone to have “skin in the game.” Wall Street can continue to make billions and billions of dollars, but they must share the wealth. Continue to get rich but pay your dues along the way. This tax must be levied on all financial products associated with US Companies or companies that do business in the US no matter what exchange they are traded on.
This tax will generate several hundred billions of dollars. Money that can be used right away to re-build roads, bridges, public buildings, water systems, sewer systems, and schools. All of these will put people to work and the multiplier affects will put even more people to work. Working people pay taxes instead of collecting unemployment payments. Everyone benefits, including Wall Street.
Re-structuring mortgages and keeping people in their homes reverses the housing depression and allows companies to start building homes again putting people back to work.
No more free ride for Wall Street. This is “a county of the people, by the people and for the people,” NOT of the people, by the people and for Wall Street.
Congress needs to enact this Wall Street tax now or every Congressman or Senator who does not act to do so should be voted out of office and replaced with representative of the people and NOT representatives of the Wall Street bankers, brokers, analysts, economists, and fat cats.
trillions & trillions