The Fed Audit

Discussion in 'Politics' started by dreamer20, Nov 8, 2011.

  1. dreamer20

    Gold Member

    Joined:
    Apr 14, 2006
    Messages:
    4,492
    Likes Received:
    4
    Gender:
    Male
    Location:
    N.Providence
    July 21,2011 "The Fed Audit" Excerpt:

    "An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

    Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. "No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president," Sanders said..."


    The Fed Audit - Newsroom: Bernie Sanders - U.S. Senator for Vermont

    Do you agree with Sanders?
     
  2. vince

    Gold Member

    Joined:
    May 13, 2007
    Messages:
    14,785
    Albums:
    1
    Likes Received:
    539
    Gender:
    Male
    Location:
    Asia
    Has the money been paid back?
     
  3. lucky8

    Gold Member

    Joined:
    Oct 30, 2006
    Messages:
    3,716
    Likes Received:
    17
    Gender:
    Male
    Better question: where is all that interest going?
     
  4. rawbone8

    Gold Member

    Joined:
    Jun 30, 2004
    Messages:
    2,864
    Albums:
    1
    Likes Received:
    4
    Gender:
    Male
    Location:
    Toronto (ON, CA)
    Interest?

    It seems some of the money was loaned at extremely low interest to some financial institutions so that it could be in turn loaned to small-medium businesses and achieve the intended result of avoiding the credit crunch that would stall the economy.

    Instead, some banks decided to use the money for other purposes. Some money was invested in Govt Treasury Bills. The bastards actually earned interest from the government on emergency money that was handed to them. They could profit with no risk investments by loaning the money back to the government and make a sure profit.

    The oversight on this seems to be pathetically slack.
     
  5. travis1985

    Verified Gold Member

    Joined:
    Jun 22, 2011
    Messages:
    868
    Albums:
    1
    Likes Received:
    32
    Gender:
    Male
    Verified:
    Photo
    Sad that not only was the emergency money abused, but that the government accepted it. I'd feel better if you could at least trust one of the two.
     
  6. Klingsor

    Gold Member

    Joined:
    Mar 3, 2011
    Messages:
    3,970
    Albums:
    1
    Likes Received:
    854
    Gender:
    Male
    Location:
    Champaign (IL, US)
    Or at least trust that they really are *two* and not just one big interconnected club. :frown1:
     
  7. dreamer20

    Gold Member

    Joined:
    Apr 14, 2006
    Messages:
    4,492
    Likes Received:
    4
    Gender:
    Male
    Location:
    N.Providence
    ...said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

    ^^ A case of corporate welfare for the rich and rugged, you're on your own individualism for everyone else - I would say.

    Yes:

    TARP moves into the black as some loans are repaid - The Washington Post


    Oddly enough Goldman Sachs didn't need the money, but got bailout funds.
    Goldman Buys Back TARP Warrants for $1.1 Billion - ABC News

    And considering it caused the downfall of 2 banks in the following scandal - I'm astonished that GS got TARP funding in 2008. See the video in the link:

    Goldman reveals where bailout cash went - USATODAY.com
     
  8. lucky8

    Gold Member

    Joined:
    Oct 30, 2006
    Messages:
    3,716
    Likes Received:
    17
    Gender:
    Male
    TARP has nothing to do with this. TARP was a doomsday bill rushed through Congress, with a little bit of oversight attached.

    These Fed loans are not Congress approved and come with absolutely no strings attached. 2 separate "loan" programs (it's actually socialism for the rich) They chose the winners and passed the risk on to the American public while keeping all the returns for themselves. Free market my ass
     
  9. D_Bob_Crotchitch

    D_Bob_Crotchitch New Member

    Joined:
    Jun 11, 2006
    Messages:
    8,498
    Likes Received:
    18
    It is true that this was done. Unfortunately, it was done to allow the banks to continue to write off their bad debts, and still profit. The banking industry was and is in worse shape than the public realizes. The government should have seized the large ones that were insolvent. It should have gone after all the bonuses that had been paid out, and people should have gone to jail. The reason they did not? Go to OpenSecrets.org. You'll see how much money they gave in campaign contributions in the last presidential election.

    Congress itself is partially to blame. In 1999, Congress repealed the Glass-Steagall Act. It had prohibited depository banks from acting as investment banks. Bill Clinton signed it into law. It allowed banks to get involved in areas of finance where they had no business being. They speculated with your money. You had to bail them out with more of your money.

    Former Treasury Secretary Paulson was former CEO of Goldman Sachs. He could have lost mega millions if Goldman had gone down. Financial disclosure laws for all high level government officials need to be changed. They should have to give yearly disclosures of their specific financial dealings, and that includes members of Congress. In fact, members of Congress should have to be the most open of all.
    I am not going to hold my breath while I wait.
     
  10. lucky8

    Gold Member

    Joined:
    Oct 30, 2006
    Messages:
    3,716
    Likes Received:
    17
    Gender:
    Male
    From the horse's mouth: Jack Abramoff: The lobbyist's playbook - 60 Minutes - CBS News

    Good interview, everyone should watch it
     
  11. sargon20

    Gold Member

    Joined:
    Mar 14, 2006
    Messages:
    11,371
    Likes Received:
    2,102
    Gender:
    Male
    Location:
    Atlantis
    Lack of congressional approval is a good thing these days. Half of them ought and we know which half I'm talking about should be brought up on treason charges for the August stunt alone.
     
  12. dreamer20

    Gold Member

    Joined:
    Apr 14, 2006
    Messages:
    4,492
    Likes Received:
    4
    Gender:
    Male
    Location:
    N.Providence
    Quite right lucky8, I made an error in referring to TARP in that post. Socialism for the rich indeed, with more and money being doled out to the "too big to fail" club members:

    Maiden Lane Transactions - Wikipedia, the free encyclopedia
     
    #12 dreamer20, Nov 30, 2011
    Last edited: Nov 30, 2011
  13. TheBestYouCan

    Verified Gold Member

    Joined:
    Sep 23, 2011
    Messages:
    836
    Albums:
    8
    Likes Received:
    1,451
    Gender:
    Male
    Location:
    U.S.
    Verified:
    Photo
    You're right. It's all one sides fault. The other is inherently good, altruistic, and infallible. Give me a break.
     
  14. sargon20

    Gold Member

    Joined:
    Mar 14, 2006
    Messages:
    11,371
    Likes Received:
    2,102
    Gender:
    Male
    Location:
    Atlantis
    Republicans fall into two categories:
    • Those who admire Michelle Bachmann
    • Those who are afraid of voters who like Michelle Bachmann
    With that in mind the contagion possibility is too great. They are to be dispensed.
     
Draft saved Draft deleted