Hidden Bailout by the Federal Reserve:
We were all aware of TARP, Troubled Asset Relief Program, AKA, “save Henry Paulsen’s buddies who run the banks and screw the consumers and taxpayers“, that was signed by George W. Bush in 2008. This gem (TARP) put up $700 Billion of taxpayer money to give to the Banks to bail them out of their idiotic loan practices that resulted in Trillions of dollars of Sub-Prime Mortgages to be made by these same banks. In other words, banks who colluded with the Treasury, Congress, the Fed, Freddie and Fannie, civil rights leaders, and Wall Street, to make known faulty loans, we given a free pass by us to make up for their mistakes…! That was bad enough, but what you did not know was that behind the scenes, in the hidden halls of the Federal Reserve, Bernanke & Company were “printing” another $1.2 Trillion Dollars to “Loan” to the big banks and Wall Street to sweeten the deal. So, while you thought that the Bailout via TARP totalled $700B, the actual price tag was almost $2 Trillion Dollars! Some of the stipends that the Fed doled out on your behalf included:
- Morgan Stanley–$107.3 Billion
- Citigroup–$99.5 Billion
- Bank of America–91.4 Billion
The real sad part is that Bloomberg News had to sue our Government through the Freedom of Information Act (FOIA), and wait for an Act of Congress, to make this debacle public! I have to say again, these bailouts were made to the very banks who colluded with the Treasury, Congress, the Fed, Freddie and Fannie, civil rights leaders, and Wall Street, to make known faulty loans. So those of us who qualified for PRIME loans, loans with 70-80% Loan to Value Ratios and fully vetted income and asset verification, not only had to have our tax dollars go to the very corrupt banks and Wall Street Firms who created this fiasco, we had to suffer the loss in our home’s equity and in many cases be forced into short sales or foreclosures.
The 2008 Depression that was precipitated by this financial conspiracy, should have been avoided but greed replaced good governance.
Make no mistake, the Depression of 2008 was created over a 30 year period and was precipitated by actions and legislation by President Jimmy Carter and his Congresses; President George H. W. Bush and his Congresses; President Bill Clinton and his Congresses; President G.W. Bush and his Congresses; and perpetuated by President Barack Obama and his Congresses. The Depression of 2008 was created by an abject failure of Government and its ability to protect its citizens. The Government and its conspiratorial cohorts in the financial sector, have a symbiotic relationship that is bonded by MONEY. The government, Presidents and Congress Members love the big chunks of political contributions they receive from big banks and Wall Street. The Management of Freddie and Fannie received obscene bonuses based on false profits based on faulty loans. Wall Street and Banks made obscene profits and their management received obscene bonuses based on the same base of faulty sub-prime loans and repackaged CDO/ABS (Collateralized Debt Obligation/Asset Backed Security) instruments. The zeal of “civil rights leaders” pushing to have mortgages made to their constituents were a substantial part and parcel of this colossal failure that led to a further degradation of the plight of lower-income citizens. While the goals of the civil rights groups may have been altruistic, they played into the hands of the Government’s need to build constituencies, and the Financial Sector’s greed to broaden its market base for loans, and profits.
The Fed’s covert involvement in “TARP II” is truly scary for a democracy. What else don’t we know? How can you trust politicians who tell us that they have fixed the problems that they created? How can we protect ourselves against our own Government? Any answers…?