Bankruptcy

Ever Wonder Where Your Tax Dollars Go?

By mcbride

Well, the Federal Reserve has now revealed where some, not all, of the 3.3 trillion dollar bail out has gone.  The recipients may surprise you.  No doubt there will be further calls for an audit of the central bank as well as a few calls for its closure as a result of these disclosures. 

“But the extent of the lending to major banks - and the generous terms of some of those deals - heighten the political peril for a central bank that is already under the gun for a wide range of actions, including a recent decision to try to stimulate the economy by buying $600 billion in U.S. bonds.

‘The American people are finally learning the incredible and jaw-dropping details of the Fed’s multitrillion-dollar bailout of Wall Street and corporate America,’ said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. ‘Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions.’

The Fed launched emergency programs totaling $3.3 trillion in aid, a figure reached by adding up the peak amount of lending in each program. “ 

For example: “The Fed then purchased commercial paper issued by GE 12 times for a total of $16 billion. It bought paper from Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued by Verizon twice, totaling $1.5 billion.” 

How amazing it is that some favored private companies get billions of tax dollars, while others are left to fail, all without oversight or the approval of the taxpayer!

Here is a link: http://www.washingtonpost.com/wp-dyn/content/article/2010/12/01/AR2010120106870.html

Michael

Full post as published by Texas Lawyer Blog on December 02, 2010 (boomark / email).