Forum Post: You think the bailout money has been paid back? You think it's the folks on welfare and unemployment that are the threat to US fiscal and economic health?
Posted 12 years ago on Jan. 15, 2012, 8:41 p.m. EST by opensociety4us
(914)
from Norwalk, CT
This content is user submitted and not an official statement
You're not even close. You're off by about 29tril...
(the banks will never pay the bailout money back - others will, not the banks)
$29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient
free money??? many ows critics complain about its supporters wanting a free ride but it appears the opposite is actually the truth.
They got to much of a hard time about taxpayer bailouts so the fed took over where they can do it secretly. The banks and wall street seem to have this idea that it's their money to gamble with as they please. I can't help thinking they wouldn't have real money without us.
You can't help thinking it because it's true. Without US citizens, they don't have real money. The US citizens will pay for this activity one way or another - one way or another. It doesn't matter what sophisticated degrees from top universities the central planners at the Fed have or how complicated the math is that they use. 1+1 will eventually equal 2, even if it's blood that's needed to make up the difference.
Well the sophisticated degrees got us into this mess trying to prove they could eliminate risk ----while loading up the markets with risk. Crazy! should have seen this coming when LTCM needed a bailout but Greenspan couldn't take a hint !!!
It strikes me as very odd that the 1% would intentionally cause massive inflation.
Sure these figures seem astronomical to the average money handler, and so they should, but do you honestly believe that wealthy people would wilfully devalue their own holdings by pumping trillions of new dollars into circulation?
I, personally, don't think so.
The equations used for these short-term cash exchanges are much more complicated than simply multiplying the amount by the number of days before the money comes back.
It has to be.
Unless the bankers don't care about the value of the dollar, they wouldn't devalue their own holdings.
Just trust the bankers
The awesome trillion size figures that you guys are coming up with aren't the loans that were given. It was the amount of the loan multiplied by the number of days for which it was rolled over (that's clearly mentioned I think in page 166 of that report). The Fed gave loans against the assets of the banks, the duration of the loan (which you refer to as bailout) was only a day (yes banks can give such short loans). So once the loan matured, it was again extended for another day. It's the same amount just getting extended. So If the fed gave $10 mil for 100 days, the GAO report (to normalize the figures) multiplied $10mil x 100 to come at a $10 billion figure. There is no secret or conspiracy here. In fact the report by GAO is in the public domain. And the report clearly mentions that the figures were multiplied by the number of days.
Thank you for your clarification. I feel better now. I was concerned that US citizens were subsidizing the financial capital of large banks and the US had some sort of hybrid "socialism for the 1%, capitalism for the 99%" economic system. Your clarification has shown that my concerns are unfounded.
you are welcome :)
cool.... was looking for that yesturday.. ;)