$16 Trillion lent by Bernanke?

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This is more likely $100 billion cycled 160 times, but still:

Recently completed GAO audit of the fed shows 16 TRILLION dollars were loaned :

“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.”

“The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.”

“The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.”

www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dc...

chilidog
Joined:
Jul. 31, 2007 4:01 pm

Comments

It's off-budget. The $16 trillion to cover private financial losses was simply created with an accounting entry....created. out of thin air. Central Banks can do that..The Fed served its constituency.

The Fed can do the same thing to cover budget deficits.. However, cutting Soc. Security, Medicaid. Food Stamps,, etc, is the prefered course..Video of economist Michael Hudson addressing the topic...and the $16 trillion..

http://www.democracynow.org/2011/7/22/pushing_crisis_gop_cries_wolf_on

Excerpts:

http://www.thomhartmann.com/forum/2011/07/video-michael-hudson-democracy-now-july-22-2011

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 4:01 pm

I don't know how I missed this: the figure was revised to $7.7 trillion in November? What's the discrepancy? Or is this in additon to the $16 trillion?

http://theweek.com/article/index/221883/the-federal-reserves-breathtakin...

chilidog
Joined:
Jul. 31, 2007 4:01 pm

http://theeconomiccollapseblog.com/archives/the-top-100-statistics-about-the-collapse-of-the-economy-that-every-american-voter-should-know

bullwinkle
Joined:
Dec. 28, 2011 2:31 pm

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