The Federal Reserve's 'breathtaking' $7.7 trillion bank bailout

Discussion in 'Economics & Trade' started by Lil Mike, Jan 18, 2019.

  1. Lil Mike

    Lil Mike Well-Known Member

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    Holy Crap!

    The Federal Reserve's 'breathtaking' $7.7 trillion bank bailout

    A new report by Bloomberg Markets Magazine details trillions of dollars in secret federal loans made to the big banks during the 2008 financial crisis, a process that helped them rake in billions of dollars in undisclosed profits. Here, some key numbers that illuminate the Federal Reserve's "breathtaking" $7.7 trillion bank bailout:

    $7.7 trillion
    Amount in undisclosed loans the Federal Reserve made to struggling financial institutions, according to the new Bloomberg report. That "dwarf the Treasury Department's better-known $700 billion Troubled Asset Relief Program [TARP]," say Bob Ivry, Bradley Keoun, and Phil Kuntz at Bloomberg.

    So while we were freaking out about the $700 billion TARP bailout, the Federal Reserve was secretly funneling trillions to the big banks.
     
    Last edited: Jan 18, 2019
  2. Reiver

    Reiver Well-Known Member

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    Perhaps right wingers shouldn't have been supporting market fundamentalism and then blubbering "Fox said it would be different"?
     
  3. wgabrie

    wgabrie Well-Known Member Donor

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    Wow, there's secret money being passed out behind the scenes in sums that are ridiculously large. It makes me feel that our entire Federal budget and debt are all just a lie.
     
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  4. james M

    james M Well-Known Member

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    I see no bankers worth $1 trillion let lone $8 trillion??? Bezos is still richest at a mere $100 billion. where did the $8 trillion go?????
     
  5. DennisTate

    DennisTate Well-Known Member Past Donor

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    But it could have been a lot worse......
    at least the world didn't go into a total economic meltdown.

    But....... President Obama and his team did teach us that giving billions to the top one percent of the top one percent of the investor class.......
    does not really boost the economy much at all.

    https://pro.moneymappress.com/p/MMR...1525314934-571105120.1525314934&h=true&h=true


    Here is a very different type of alternative to what President Obama did from 2009 - 2014...... and it would be good for the conscience as well.


    Would a Basic Minimum Income dramatically reduce abortions?
     
    Last edited: Jun 6, 2019
  6. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    How does this reflect free market fundamentalism?
     
  7. Distraff

    Distraff Well-Known Member

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    And thats why we still have banks and an economy. Arguably the Federal Reserve is more responsible than Obama, Bush, or Trump for the recovery and booming economy today.
     
  8. Reiver

    Reiver Well-Known Member

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    Free market fundamentalism delivered neoliberalism and neoliberalism delivered economic crisis, with a bloated financial sector too big to fail.
     
  9. squidward

    squidward Well-Known Member

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    Government and managed markets delivered this, and its whore apologists are still busy defending them.
     
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  10. Reiver

    Reiver Well-Known Member

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    Free markets do not exist and will not exist. It merely provides the economics to shepherd the herd, enforcing even more extreme inequalities.
     
  11. kazenatsu

    kazenatsu Well-Known Member Donor

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    I believe the reason we didn't see significant inflation was because the Fed's bailout was just cementing in stone the housing inflation that had already happened in the bubble. It basically converted housing inflation (which was unsustainable) into monetary inflation, and thus there was no obviously noticeable change in prices.
    If the Fed hadn't done that, housing equity values would have gone back down (to what was sustainable) and there would have been significant deflation. Something that Fed policymakers specifically did not want to see happen.

    Said in different words, the bailout caused lots of inflation, but it was only to adjust for deflation, so as a net result there wasn't much obviously observable change.
    Inflation definitely happened, but the effects would have been observable gradually leading up to the housing bubble.

    The Fed printed money to fill the void of housing equity people in the economy thought they had but actually did not.

    Now that's not to say what the Fed did was a good thing, but if you want to understand the situation here, I think you need to understand this first.
     
    Last edited: Jun 7, 2019
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  12. squidward

    squidward Well-Known Member

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    Then your crap about free markets delivering neoliberalism really is crap
     
  13. squidward

    squidward Well-Known Member

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    So you dont believe in taking responsibility for your poor business decisions?
     
  14. kazenatsu

    kazenatsu Well-Known Member Donor

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    I don't see how you got that message out of what I posted.
     
  15. squidward

    squidward Well-Known Member

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    Do you approve or disapprove?
     
  16. kazenatsu

    kazenatsu Well-Known Member Donor

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    I believe I am on your side on this one.
     
  17. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    mmm.. I'm thinking America's foreign policy is directly related to all these bank bailouts, after all how many times can you bail out the banks before you need to start raiding to fill your coffers again.
     
  18. jack4freedom

    jack4freedom Well-Known Member Past Donor

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    We need to abolish this thieving system along with IRS.
     
  19. squidward

    squidward Well-Known Member

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    Historically, that's been my impression.
    Your post appeared somewhat ambiguous in that regard. But that could have been my reading, and communication by text is always less than optimal.

    I don't believe in punishing savers to offset the losses of wreckless borrowers. And with the five largest US banks having about $200T in derivatives on their books against only about $10T in real assets, I do believe the $7.7T was aimed at preserving their debt pyramid
     
  20. Lil Mike

    Lil Mike Well-Known Member

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    Except we've not managed to fill any coffers.
     
  21. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Resources is a long term game (ie Keystone going ahead, developments in Iraq, the Venezuela standoff), and certainly retaining your market monopoly (Huawei vs Apple) directly affect your "coffers" the potential sanctions on NordStream 2 again directly influence "coffers" NATO budgets and weapons sales etc etc.
     
  22. kazenatsu

    kazenatsu Well-Known Member Donor

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    What I was just trying to say was that the massive bailouts did cause substantial inflation, but I was explaining why we didn't see it.

    It would be sort of like if one of your children borrowed coins out of a clear glass savings jar without your permission, taking just a few coins out every day for a couple of days, with the intention of later putting it all back in a month. But immediately after they return it back into the jar someone else steals half the coins. To you it doesn't look like someone else has stolen your coins.
     
    Last edited: Jun 7, 2019
  23. Lil Mike

    Lil Mike Well-Known Member

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    I'm not sure how you think we profited in Iraq.
     
  24. scarlet witch

    scarlet witch Well-Known Member Past Donor

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  25. 61falcon

    61falcon Well-Known Member

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    There is not now nor has there ever been a Free Market Economy!!!Someone somewhere ALWAYS has there thumb on the scales.The FIX is always in.
     

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