"Joe, who own the Federal Reserve?" "Owns...Owns."
What is their budget. Can we get by without it as Ron Paul said?
The Creature From Jekyl Island is taking its last chomps out of the Republic before the golden goose is dead.
The Federal Reserve CREATES money (actually, debt) out of thin air. They’ve done this under Obama to the tune of $85 Billion Dollars per MONTH for over 4 years. They recently backed this off to $75 Billion per month, but it comes to over a Trillion Dollars a year, created out of thin air.
They take this money and essentially buy T-bills that helps to legitimize the US Debt, and they spend the other ~half on Mortgage Backed Securities (the stock market).
They recently blasted out a brag to the world that they have a $4.3 Trillion Dollar Surplus! Oh Goody! Guess where that $4 trillion came from and what it is comprised of? Yep, the same crap they bought with the money they created out of thin air. They are, in fact, as broke as I am, most of us are.
It is owned by the biggest enemies to America.
I have a cousin who works for JP Morgan. The Fed did something like that to them back in 2007, loaned them money they didn’t want or need and required them to buy a few failing banks. It’s seems to be the Fed’s way to absorb failing financial institutions before they publically crash and burn. One of the banks JP had to buy back then they bought for cents on the dollar and it was still way too much, that’s how bad of shape the bank was in - and the public had no clue. It was the same type of weekend assessment - JP went in on a Friday by Sunday they knew it was worth about $2 per share. They acquired it on Monday morning for $12 per share - which was still way below what it was trading at. So JP looks like a vulture to the public that don’t know what went on behind the curtain.
A lot of people should have went to prison that didn’t. They got massive amounts of money from the government instead. The worse affect of this is the message it sends to the people. When huge bailouts like this happen as a result of a corrupt system, it reduces or removes any inclination your average person may have against taking government handouts or lying here and there to ‘get theirs’.
That’s the REAL ‘moral hazard’ in this. When banking executives and politicians are getting away with it, many folks won’t think twice about doing such things themselves. It’s a downward spiral. When our country loses the ‘Rule of Law’ and the morality of doing the right thing, eventually everything else will go with it.
The Bear Stearns deal might have been the one he was telling me about. The Fed drove it - not JP. Other healthy financial institutions had to do the same thing, absorb failing banks - all at the Fed’s directive.
Ellen is funny. I guess this pays better than her alternative health scam.
Who created the FED? Government. What do you think? Pretty simple answer. Government.
This is what happens when a clown, Ellen, does a google search instead of doing original research.
The Fed opened a line of credit for AIG, but the Treasury, through TARP, ended up buying the stock, not the Fed.
That is all that is going on: sensible, normal transactions that are not easy to explain or understand without an understanding of how financial markets and the US government work.
As for the Fed being privately owned, that is a legal fiction and is not the equivalent of the Fed being a profit making private bank. Fed member banks are simply not proprietary shareholders who get dividend payments. In substance, the Fed is a government controlled entity with a high degree of independence as to monetary policy.
Experience in the US and around the world shows that such independence for central banks works best because the alternative -- putting politicians in charge -- too often means giving venal, ambitious, and stupid people control of the financial system.
The better criticism is that, with Obama's economic policy being so bad, the Fed has taken up the slack using its interest rate and monetary powers. In order to alleviate financial stress by creating and issuing new money, the Fed lent great sums to Wall Street and to the banking industry and made vast purchases of not just government debt but also debt issued by corporations.
The result was a flood of money and credit that helped to keep the recession from getting worse -- and also gave people with wealth the ability to become wealthier by borrowing and buying up assets that are at historically low valuations. The stock market boomed and real estate prices stabilized and sales have ticked up. This policy of cash and credit for the wealthy was supported by Obama and his Treasury Department.
That is the real scandal: Obama's economic policies have helped the rich get richer. The Republican alternative -- letting markets clear, tax cuts, and spending restraint -- would have worked better to combat recession and would have generated widespread gains in employment and wealth at all levels. That is what happened under Reagan, with widespread prosperity instead of the Obama recovery for the rich.
"Joe, who own the Federal Reserve?" "Owns...Owns."
Bump for later.
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