Bloomberg is reporting that the Federal Reserve has doled out $2 trillion in bailout loans and that they are refusing to disclose the recipients of those loans. Bloomberg is currently suing under the freedom of information act for that information to be disclosed.
You might be asking yourself, "$2 trillion? I thought the bailout was only $700 billion?"
Apparently the Fed, who up until now only gave loans to the government (in the form of currency in exchange for government bonds), has apparently expanded to whom they can loan money. That $2 trillion does not fall under the terms of the bailout and therefore is not subject to congressional oversight.
"Why won't they just tell us the recipients of these loans?"
That's the $2 trillion question, isn't it? The supposed reason that we're not being told this information is that it could "undermine public confidence in the system." Basically, banks don't want people knowing they need cash because their fear is that people will pull their deposits. I suppose this is a valid concern as similar public reactions are what helped spur the Great Depression, but my fear is that the system SHOULD fall and it's worse for us in the long run if it continues on like it is. The rich will continue to get richer at the poor's expense.
"What about Obama? When he gets in office he'll change everything."
I hope so, but hope doesn't mean it will happen. In fact, during the campaign, Obama said he would "make our government open and transparent so that anyone can ensure that our business is the people's business." However, he has yet to comment on this issue. If you mean what you say, Barack, you now have a great chance to prove it to us. It's time to step up.
I say boycott the system. Pull your money from the major banks in favor of small banks and credit unions. We do not need to do business with Bank of America, Wachovia (Citibank), JP Morgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley. Those banks are on both sides of this issue. They each have a stake in the Fed (which, at a lower level is completely private and owned by those banks), AND they have already recieved $120 billion from the actual bailout. I can only assume they are also the targets of these hidden loans and, in essence, they are printing money for themselves at their whim.
Let me repeat that, because I believe it to be true. The largest banks in America are printing money for themselves at their whim. If I tried to do that, the secret service would arrest me as a counterfeiter.
God forbid the public realize what is actually going on. Now, if only I could prove it.
You might be asking yourself, "$2 trillion? I thought the bailout was only $700 billion?"
Apparently the Fed, who up until now only gave loans to the government (in the form of currency in exchange for government bonds), has apparently expanded to whom they can loan money. That $2 trillion does not fall under the terms of the bailout and therefore is not subject to congressional oversight.
"Why won't they just tell us the recipients of these loans?"
That's the $2 trillion question, isn't it? The supposed reason that we're not being told this information is that it could "undermine public confidence in the system." Basically, banks don't want people knowing they need cash because their fear is that people will pull their deposits. I suppose this is a valid concern as similar public reactions are what helped spur the Great Depression, but my fear is that the system SHOULD fall and it's worse for us in the long run if it continues on like it is. The rich will continue to get richer at the poor's expense.
"What about Obama? When he gets in office he'll change everything."
I hope so, but hope doesn't mean it will happen. In fact, during the campaign, Obama said he would "make our government open and transparent so that anyone can ensure that our business is the people's business." However, he has yet to comment on this issue. If you mean what you say, Barack, you now have a great chance to prove it to us. It's time to step up.
I say boycott the system. Pull your money from the major banks in favor of small banks and credit unions. We do not need to do business with Bank of America, Wachovia (Citibank), JP Morgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley. Those banks are on both sides of this issue. They each have a stake in the Fed (which, at a lower level is completely private and owned by those banks), AND they have already recieved $120 billion from the actual bailout. I can only assume they are also the targets of these hidden loans and, in essence, they are printing money for themselves at their whim.
Let me repeat that, because I believe it to be true. The largest banks in America are printing money for themselves at their whim. If I tried to do that, the secret service would arrest me as a counterfeiter.
God forbid the public realize what is actually going on. Now, if only I could prove it.
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Thanks for the sweet comment, eh! <3