Posted on 12/02/2010 1:22:10 AM PST by quesney
One may be forgiven to believe that via its FX liquidity swap lines the Fed only bailed out foreign Central Banks, which in turn took the money and funded their own banks.
It turns out that is only half the story: we now know the Fed also acted in a secondary bail out capacity, providing over $350 billion in short term funding exclusively to 35 foreign banks, of which the biggest beneficiaries were UBS, Dexia and BNP.
Since the funding provided was in the form of ultra-short maturity commercial paper it was essentially equivalent to cash funding. In other words, between October 27, 2008 and August 6, 2009, the Fed spent $350 billion in taxpayer funds to save 35 foreign banks. And here people are wondering if the Fed will ever allow stocks to drop: it is now more than obvious that with all banks leveraging the equity exposure to the point where a market decline would likely start a Lehman-type domino, there is no way that the Brian Sack-led team of traders will allow stocks to drop ever... Until such time nature reasserts itself, the market collapses without GETCO or the PPT being able to catch it, and the Fed is finally wiped out in one way or another.
Chart: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/gono/CPFF%20Foreign%20Banks.jpg
(Excerpt) Read more at zerohedge.com ...
It seems like we’re waking up on a daily basis to ever-more evidence the country we all grew up in no longer exists.
Michael Savage compares the wholesale looting of the treasury and theft from taxpayers like a segment of The Sopranos where the owner of a sporting goods store with a mob debt has his store taken over. The mobsters run up all his credit cards and cart away his inventory out the back until nothing is left but a gutted storefront and the owner is left in ruins.
The stock market is just another Scam at this point.
First: I am not fond of public spending.
But it is important to accept the fact that most debt (in America, UK, Sweden) are external and owed to nonresidents.
Privatize the profit, socialize the losses. The new business model. Watch for new round of money printing.
Known as a "Bust Out".
Pretty common in Noo Yawk and Joisey in the '60s. Vegas too...
I may be wrong, but I seem to remember that this has ben known for some time. The home loans to bad credit/no credit customers were bundled and sold upstream to lots of foreign banks and insured by AIG - hence the AIG bailout “bailed out” big foreign banks. The article below gives some perspective - there are probbably more succinct ones out there:
http://www.thenation.com/article/153929/aig-bailout-scandal
like a segment of The Sopranos where the owner of a sporting goods store with a mob debt has his store taken over. The mobsters run up all his credit cards and cart away his inventory out the back until nothing is left but a gutted storefront and the owner is left in ruins.
And they torch the place and collect on the insurance.....the end
how much of this,
has been paid back?
And yet people still attack ron paul.
should never have happened
This simply has to be untrue.
bump
I’m not gonna pay jack squat, and neither are my kids.
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