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View Diary: What does a multi-trillion dollar bailout get you? (24 comments)

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  •  I only have a few questions: (0+ / 0-)

    How much was loaned, in total?  How much has been repaid?  Have sufficient laws been enacted to prevent a repeat?  Has the credit default swap crisis eased in the past four years, or is the world's economy still in huge danger on the issue?

    "Two things are infinite: the universe and human stupidity, and I am not sure about the universe." -- Albert Einstein

    by Neuroptimalian on Sun Jan 27, 2013 at 11:51:07 AM PST

    •  TARP was $700 billion - about 1/2 went to banks (1+ / 0-)
      Recommended by:
      Neuroptimalian

      Fully repaid by the TBTF banks involved.

      The Fed now has $1.6 trillion of bank money on reserve with them - paying only .025% interest.

      http://www.federalreserve.gov/...

      Bank loans were only $565 million in the most recent time period (see column on the right).

      "The way to see by faith is to shut the eye of reason." - Thomas Paine

      by shrike on Sun Jan 27, 2013 at 11:57:33 AM PST

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    •  Re: (9+ / 0-)

      How much loaned depends on who you ask. See my links. It's in the trillions no matter how you measure it.

      Have sufficient laws been enacted to prevent a repeat? LOL!!
        Not even close.

      The derivatives crisis has eased, but has gotten much larger. Thus if we run into another crisis, it will bust the system.

      ¡Cállate o despertarás la izquierda! - protest sign in Spain

      by gjohnsit on Sun Jan 27, 2013 at 12:01:13 PM PST

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    •  Asking about TARP? Money is (9+ / 0-)

      fungible. So while you can say TARP has been (mostly) repaid, you can also say that various actions of the Fed and the Treasury pumped in the cash which the bankers then "paid back." Some fraction, mostly smaller banks, come from loans from other Federal Programs (like Small Business association).

      But there's been little mass-reach Media acknowledgement of the secondary, tertiary, etc cash infusions.

      Plus, it's the Fed. (Said in the mood of "forget it Jake, it's Chinatown")

      Nobody is really privvy to what they do, though the 1st (and limited) audit in their history was released by the GAO not long ago.

      http://investmentwatchblog.com/...
      $16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland (see page 131 of GAO Report Warning: PDF).

      From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.

      The [partial] list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
      Citigroup: $2.5 trillion
      Morgan Stanley: $2.04 trillion
      Merrill Lynch: $1.949 trillion
      Bank of America: $1.344 trillion
      Barclays PLC (United Kingdom): $868 billion
      Bear Sterns: $853 billion
      Goldman Sachs: $814 billion
      Royal Bank of Scotland (UK): $541 billion
      JP Morgan Chase: $391 billion
      Deutsche Bank (Germany): $354 billion
      UBS (Switzerland): $287 billion
      Credit Suisse (Switzerland): $262 billion
      Lehman Brothers: $183 billion
      Bank of Scotland (United Kingdom): $181 billion
      BNP Paribas (France): $175 billion

      This only goes through 2010, so what happened in 2011/2012 would likely add to that $16T. People, rightfully, calculate the total in those "TARP-plus" programs at anywhere from 6 to 25 times TARP.

      Then you've got things like the Fed giving low-interest loans to the Big Banks who then buy higher-paying bonds from the Treasury, and pocket the difference and get called "savvy businessmen." This is not called a bail-out.


      Markos! Not only are the Gates Not Crashed, they've fallen on us. Actual Representatives are what we urgently need, because we have almost none.

      by Jim P on Sun Jan 27, 2013 at 12:49:24 PM PST

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