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Forum Post: It's Time to Overhaul the Fed

Posted 12 years ago on Dec. 5, 2011, 7:48 a.m. EST by karenpoore (902)
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[-] 1 points by demcapitalist (977) 12 years ago

Good article

"The Fed did everything it could to hide its books from public view, but Bloomberg LP sued the central bank, and in so doing, forced the Fed to comply with the Freedom of Information Act.

Thank you, Bloomberg, this nation owes you a debt of gratitude.

What was revealed were little items - things like the Fed having actually shelled out some $7.77 trillion to prop up both domestic and foreign banks, even though some either didn't need the money or should never have gotten it in the first place.

Why would banks or corporations take money they didn't need? Because it was essentially free - well not exactly free, since they had to pay about 1% interest in some cases and one-tenth of one percent in other cases.

Still, you can make good money borrowing practically for free and investing that money in anything interest bearing. That includes the toxic assets on many borrowers' books that they didn't have to sell because they got financing to keep them on their books. Oh, and that's still happening, a lot.

You see, part of the big lie was that it would take $700 billion of Troubled Asset Relief Program (TARP) money to aid our stricken banks. Of course, that was front money, or money that the public could see. What the public couldn't see was how bad things really were, because it couldn't see how much taxpayer money the Fed was shelling out.

Nor could Treasury officials see it, nor could legislators writing new bank regulatory rules to ensure this wouldn't happen again.

But it will happen again. It's just a matter of time."

[-] 1 points by demcapitalist (977) 12 years ago

I know there folks on the right who want to abolish the fed --------I'd say most of the left could agree that it needs an overhaul and transparency.