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View Diary: Why what Ben Bernanke said yesterday should make you angry (102 comments)

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  •  You're not getting it (1+ / 0-)
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    akadjian

    The banks are indeed dysfunctional.  In order for the economy to survive -- which requires people getting loans to buy large ticket items -- the Fed stepped in and basically has become the nation's "Citibank."  It's a bit complicated in structure, but essentially rather than as in the past, the Fed lending money to banks which lend to consumers, the Fed is lending to consumers through some thinly disguised intermediaries.  It does this by buying something like 95% of all mortgage backed and car loan backed securities that have been issued.

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