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The Federal Reserve is like Santa Clause.
Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms
European Banks took hundreds of Billions in taxpayers dollars
FT.com / US / Economy & Fed - European banks took big slice of Fed aid
Bank of America or Bank of Asia?
Bank of America Becoming Bank of Asia as Revenue Rises 30% - Bloomberg
Sooooooooooooooo, when Europe defaults it will be you and our children holding the tab....NICE........audit the Fed.
Funny how 1/2 your posts get no response on these boards... This post is typical of the dribble you peddle. It is misinformed fear mongering which grossly distorts reality. Either you didn't read the articles or you lack a basic understanding of what the emergency credit program accomplished. Likely both. I don't expect that you will respond with anything other than a quip or sarcastic comment. Why? Because you are incapable of debating the issues. Please prove me wrong.
To the post at hand:
Wrong, as usual.Quote:
Originally Posted by Islandborn
If you had bothered to read you would know that "the crisis lending programs are now all closed,"... "and we didn't lose a dime, and in fact we made money on every one of them."
Yes, the federal reserve did act as the lender of last resort for US and international banks, as well as a number of large multinational corporations, and the Fed lent them billions under a number of programs. By far the largest of these programs supported the commercial paper market. With the credit markets frozen, banks and therefore businesses were unable to sell commercial paper (short term loans - any thing from 24 hours to 1 week). With this critical market at a standstill employers large and small would have been unable to meet payroll. So the fed serviced the commercial paper market until the problems in the market were resolved.
It made perfect sense to support overseas banks. First, they hold a tremendous amount of US debt. If they fold then they call in their obligations and we default. Second, they employ many many Americans, both directly and indirectly. Further, they were in danger of collapse because they bought our toxic assets!
So we spent(printed) all that money to postpone paying the piper? It's like a game of hot potato, at some point we will have to pay the bills.
If the facts check out, I'm with Islandborn on this one...that is some seriously underhanded shit. Most government officials need a class in elementary finances, or need to be expelled from the school of If We Don't Have the Money, We Can Spend it Anyway.