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View Diary: Federal Reserve Made $1.2 Trillion In Secret Loans During 2008 Financial Crisis (15 comments)

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  •  HoundDog, it was much worse than that... (3+ / 0-)
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    Greyhound, MJ via Chicago, HoundDog

    Check this out:

    The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. (My emphasis added)

    It's not whether this was effective or not, or a worthy endeavor; it's the fact that it was done secretly, without any checks and balances. Indeed, the FED has become a Shadow Government not subject to any checks and balances or transparency requirements.  

    •  Major Tom, if you read the GAO report, (1+ / 0-)
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      Major Tom

      the text accompanying Table 8 that reports the $16 trillion specifically states that the figure is counting loans that were rolled over more than once.  That means the loans were either not used and renewed, or were used and repaid and made again (like a line of credit). Table 9, which reports a much lower number, is an attempt to correct the double counting.  As much as I love Sanders, I don't think his press release is correct on the facts, but I would love to be proven wrong,

      Hey, Republicans, the whole world is watching.

      by TAH from SLC on Tue Aug 23, 2011 at 11:18:26 AM PDT

      [ Parent ]

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