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Our Government Tossed Out Billions of Dollars of Our Money…..

I guess we’ve lost the ability to be angry anymore in this country, but give this a read….

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America.

Sen. Bernie Sanders

Sen. Bernie Sanders

Independent U.S. Senator from Vermont

Posted: December 2, 2010 12:43 PM
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At a Senate Budget Committee hearing in 2009, I asked Fed Chairman Ben Bernanke to tell the American people the names of the financial institutions that received an unprecedented backdoor bailout from the Federal Reserve, how much they received, and the exact terms of this assistance. He refused. A year and a half later, as a result of an amendment that I was able to include in the Wall Street reform bill, we have begun to lift the veil of secrecy at the Fed, and the American people now have this information.

It is unfortunate that it took this long, and it is a shame that the biggest banks in America and Mr. Bernanke fought to keep this secret from the American public every step of the way. But, the details on this bailout are now on the Federal Reserve’s website, and this is a major victory for the American taxpayer and for transparency in government.

Importantly, my amendment also required the Government Accountability Office to conduct a top-to-bottom audit of all of the emergency lending the Fed provided during the financial crisis to be completed on July 21, 2011, which will take a hard look at all of the potential conflicts of interest that took place with respect to this bailout. So, in many respects, details that the Fed was forced to divulge on Wednesday about the $3.3 trillion in emergency loans that until now were totally kept from public scrutiny, marked the beginning, not the end, of lifting the veil of secrecy at the Fed.

After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed’s multi-trillion-dollar bailout of Wall Street and corporate America. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions and how we can make our financial institutions more responsive to the needs of ordinary Americans and small businesses.

What have we learned so far from the disclosure of more than 21,000 transactions? We have learned that the $700 billion Wall Street bailout signed into law by President George W. Bush turned out to be pocket change compared to the trillions and trillions of dollars in near-zero interest loans and other financial arrangements the Federal Reserve doled out to every major financial institution in this country. Among those are Goldman Sachs, which received nearly $600 billion; Morgan Stanley, which received nearly $2 trillion; Citigroup, which received $1.8 trillion; Bear Stearns, which received nearly $1 trillion, and Merrill Lynch, which received some $1.5 trillion in short term loans from the Fed.

Huffington Post

One Comment

  • smtblnde says:

    The easiest way for Americans to understand the action by the U.S. Govt and the Fed is to understand the relationship between home and gold prices.
    In January 2006, the median U.S. home was worth $237 k, gold was around $600/oz. Therefore, it took approximately 395 ounces of gold to buy a median home in January 2006.

    Now, gold is around $1400/oz., the median U.S. home price is around $180 k, Therefore it only takes 128 oz of gold to buy a median house.

    If you multiply 128 oz by the $600/oz price of 2006, you get $76,800 – So the true value of the home price decline is from $237k to $77k!

    Of course, if everyone saw that price decline in dollar terms, wholesale walkaways would have occurred, causing a run on the banks.

    So how did the Fed hide this real loss? By taking out a 3rd mortgage on everyone’s home by the way of increased debt and printing of money.

    So what happens now? Bond rates will continue to rise and currencies will continue to falter. Essentially, the Fed had delayed the total destruction of the modern economy as we know it today.

    In smaller economies, Iceland, Ireland, Greece, the funny money is more difficult to hide. Moreover, the political denial for indentured servitude of the citizens and their progeny for the sake of the banks is more salient.

    My hats off to the people of Iceland for defaulting on the debt and allowing private banks to go under:

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