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No, Bank Bailouts HAVEN’T Ended
CNN headlines, “Fed Ends ‘Too Big to Fail’ Lending to Collapsing Banks”.
Sounds good …
But CNN quickly backtracks:
“There are still loopholes that the Fed could exploit to provide another back-door bailout to giant financial institutions,” [Congresswoman Elizabeth] Warren, a Democrat, told CNNMoney.
***
It’s important to note that the new rule allows the Fed to judge by its own measures whether a firm qualifies for its emergency aid.
The idea is the Fed can still lend to banks during times of emergency, but the bank must be able to pay it back. Yet the true health of a bank in turmoil can be very difficult to assess.
“It’s very hard to judge in real time whether a firm is insolvent or just having liquidity problems because it becomes impossible to price assets,” says Paul Ashworth, chief U.S. economist at Capital Economics, a research firm.
That’s why Warren wants clearer guidelines.
“It’s up to Congress to close those loopholes and ensure that Fed emergency lending is limited to protecting the economy and not to saving a few favored banks,” Warren says.
***
The Fed performs “stress tests” on banks to see how they perform in a mock financial crisis scenario. It’s also forced banks to increase the amount of cash they have stashed away to weather the next rainy day.
As we reported in 2009, the stress tests are a sham:
- Time Magazine called the previous stress tests a “confidence game” and Geithner a “con man” for running them deceptively
- Paul Krugman called the stress tests a mere “self-esteem class” for banks that no bank would be allowed to fail
- Nouriel Roubini said the stress tests “fail the basic criterion of a reality check”
- William K. Black called them “a complete sham”
- FDIC head Sheila Bair didn’t believe they were credible
- The stress tests were a P.R. stunt devised by the banks themselves
We noted in 2011 that the the heads of the Federal Reserve and Treasury Department lied about the health of the big banks in pitching bailouts to Congress and the American people:
The big banks were all insolvent during the 1980s.
And they all became insolvent again in 2008. See this and this.
The bailouts were certainly rammed down our throats under false pretenses.
But here’s the more important point. Paulson and Bernanke falsely stated that the big banks receiving Tarp money were healthy, when they were not. They were insolvent.
Tim Geithner falsely stated that the banks passed some time of an objective stress test but they did not. They were insolvent.
In addition, the $700 billion 2008 bailout was just one aspect of the government’s ongoing bailouts of the too big to fail banks. A leading banking analyst says that the giant banks are receiving $780 billion dollars each and every year through various types of hidden bailouts.
In other words, the “end” of the type of bailout discussed by CNN doesn’t touch the other massive, ongoing bailouts of the big banks.
Moreover, the powers-that-be may be setting us up for “bail-ins”, where banks simply grab our deposit money and use it to plug the holes in their balance sheets.
The bottom line: Beneath the headlines, the truth is that the financial reform legislation has NOT really ended the bailouts … and things are only getting worse.
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now you tell me.
has america been ran by any constitutionally elected body, or has it been ran by international bankers, and their highly paid cronies, since 1913?
The number after QE simply marks the decision to ratchet up the money printing to a new level. It is always ongoing, and always has been.
The whole QE meme is a propaganda tool to influence the common people and market traders into believing a certain contrived "reality".
Neo-Keynesians believe that economic behavior is a vast, shared delusion of the masses and that proper central authority economic policy is to trick people into thinking a certain way. You can fool people into believing the economy is good, maintain a lie that benefits the people at the top, and that will suffice to head off any emerging realities (truth) from reaching the poor, dumb saps that you dominate.
This is why neo-Keynesianism is an extension of the slave system.
When the Fed increases its balance sheet, it's putting dollars in the aggregated accounts of its member banks which own the Fed. This could be called a bailout, QE, or any name.
What is zirp if not an ongoing bank bail out? Intended to minimize bank holding costs on non or underperforming assets while waiting for the ultimate inflationary bailout. In a normal risk market deposit interest rates should have been in the range of 6% over the past 6 years. If you received 1% the difference is what all depositors paid to subsidize the cartel. That would be about 30% of your deposits over 6 years. And you think you haven't been bailed in? Congrats to the cartel however for managing to protect it's shareholders. Dividends stemming from zirp profits and carry trade exceeding deposit rates. Who would have thought?
In short, the lyin' stealin' and killin' still continues.
Taxpayers still have not paid for the generational wealth transfer done over the last 7 years...the banks will start to go down again and we will come to their rescue...again, because they own EVERYTHING
Anyone who has played a lengthy game of Monopoly will understand how GREED can infect the people playing the game. This instinct for security - thus safety - has been warped and exploited by a tiny fraction of the world's population who claim to KNOW BEST what money should be and how best to use it, and use it so they themselves are made rich with this Monopoly money. Methinks in the not so distant future those who don't know how to be of VALUE for others - who lack basic survival skills -will find themselves with the short stick.
The Bank never "goes broke." If the Bank runs out of money, the Banker may issue as much more as needed by writing on any ordinary paper.
http://www.hasbro.com/common/instruct/00009.pdf
Page 3 of Monopoly rules.
Frankenstein's monster (the Karloff version) had it pegged: " We are better off dead."
I think American Exceptionalism refers to how exceptionally naive and gullible Americans are. They believe in their system. They believe in their politicians. They believe in their rights. They believe they can succeed. They believe all the lies about American history. They believe Americans are better, happier, stronger and "righter" than everyone else.
Yep. We, and the rest of the world, are better off dead.
So kill yourself already. Life would be boring without challenges. Death is definitely boring. I choose the challenges.
I can't help but think that you are refering to yourself as naive and gullible. Expat, is that Expatriot? If so, having you comment on the mental status of Americans, makes as much sense as letting people on welfare vote for who will give them more welfare.
Well, here we are.
Not one surprise in this article, in fact, this is all well known (to those not in Political Correct Denial - ie most).
Just to be clear: The Global Monetary, fiscal, financial and economic System, is not "Capitalism", it is pure Banking Fraud and Recursive Scamming.
http://verbewarp.blogspot.com.au/2011/02/economic-heresy.html
http://verbewarp.blogspot.com.au/2011/08/delusional-economics.html
And, this BANK Fraud is run by those who call themselves "Economists"; that is, this with influence and orate on matters of governance from Academia to Politics, on behalf of those who call themselves Bankers.
"Ignorance is no excuse of the Law".
I hope I am being clear.
Ho hum
Must add that as the USA TBTF Establishment is set to completely Collapse before the end of Q4 2015, to cover their er, BANK Fraud insolvency, inadequateness, dishonesty, criminal racketeering, lying, thievery, etc., etc., etc., ad nauseum, from the World (as if nobody except Americans don't know LOL), they are now blaming the Russians.
Not only are these TBTF dumbfooks, they are desperate dumbfooks as well.
And they call the "American Exceptionalism" (You just can't make this shit up!)
From John Paul Roberts, et al:
"Former US Secretary of Defense Joins PCR In Warning Of Nuclear Armageddon Risk
i have been warning that the crazed neocons and their two-bit puppet, president obama, are leading, with the assistance of the presstitute media, the world back to the prospect of nuclear Armageddon. A former Secretary of Defense agrees with me. Wake up! Constrain the insane US government, or life on earth is over."
http://www.paulcraigroberts.org/2015/12/03/former-us-secretary-of-defense-joins-pcr-in-warning-of-nuclear-armageddon-risk/
Ho hum
Just in case you need a link:
http://russia-insider.com/en/media-criticism/did-russia-hack-us-banks-no...
"your deposit money"
What part of putting money in "the bank" being an unsecured loan to the bank do people not understand?
The whole metaphor of banks "keeping" your money for "safekeeping", rather than being borrowers of money really needs to die. Its extremely outdated and highly misleading.
Nah. FDIC has ALL our deposits covered if there is a problem....
“It’s up to Congress to close those loopholes and ensure that Fed emergency lending is limited to protecting the economy and not to saving a few favored banks,” Warren says.
I thought it was Congress that creates loopholes in the first place. Do they have any idea how to close one?
Loopholes are accidents in rule making, but there is nothing accidental about this little screwing.....