This page has been archived and commenting is disabled.

Multi-Trillion Bank Bailout Leads to Multi-Billion Bank Profit Bloomberg Finds

Tyler Durden's picture


Back in August when Bloomberg first scoured the depraved depths of the almost-30,000 pages of FOIA-released Fed documentation surrounding the biggest ever bailout in history, the sheer volume of the loans, ultra-low cost of funds, and lying-through-their-teeth nature of the bank CEOs was enough for some vindication of tin-foil-hat-wearing fringe blogs. In this month's Bloomberg Markets magazine, much of this is rehashed but the truly incredible part - though not entirely shocking to us - is the magnitude of the profits that the banks amassed directly as a result of these 'secret' bailouts. Almost a quarter of their entire income was generated during this period from bailout-related sub-market funds. Over $13bn profit was 'appropriated' during the crisis with Citi and BofA among the largest profiteers.


For those with the stomach for what is the highest form of crony capitalism writ large and explained in its clearest and most egregious manner yet, the article also has an interactive chart of the banks' profit-gains direct from the Fed's bailouts during this period. Dean Baker's quote from the article perhaps sums up our perspective at the time and now:

"banks were either in bad shape or taking advantage of the Fed giving them a good deal. The former contradicts their public statements. The latter - getting loans at below-market rates during a financial crisis -- is quite a gift."


Another notable perspective was:

"Banks don’t give lines of credit to corporations for free, why should all these government guarantees and liquidity facilities be for free?"


Perhaps the growing awareness of this secret bailout and huge profiteering by the banks will bring a renewed focus on the words and deeds that spew from the banks and we note that Sentor Kaufman (of the defeated Brown-Kaufman proposal) unequivocally states...

"we’re absolutely, totally, 100 percent not prepared for another financial crisis."


...when they come begging for QEnnn and further direct assistance (claiming M.A.D.) as the European crisis highlights the deleveraging that still faces the global financial system and the balance sheet 'holes' that will need to be filled.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/28/2011 - 00:52 | 1920078 tekhneek
Mon, 11/28/2011 - 00:58 | 1920089 The Big Ching-aso
The Big Ching-aso's picture



I'm shocked.    Who could've thought that the obvious could fucking happen?

Mon, 11/28/2011 - 01:16 | 1920119 ZapBranigan
ZapBranigan's picture

"100% not prepared..."

Don't be like them.

Mon, 11/28/2011 - 02:49 | 1920222 TruthInSunshine
TruthInSunshine's picture

Breaking News, bitchez:


11-28 1:45: WSJ writes: "Inner Workings of Market Readied for Euro Breakup"


*"Who could have possibly seen this coming?"

Mon, 11/28/2011 - 05:22 | 1920301 DrunkenPleb
DrunkenPleb's picture

Oh, well... who is John Galt anyway?

Mon, 11/28/2011 - 01:30 | 1920136 Popo
Popo's picture

Truly amazing.  Who would have guessed that the world's most self-interested, sociopathic,  dishonest businesses would do something self-interested, sociopathic and dishonest?   

For our next act:  What are the chances that our useless, treasonous, duplicitous and incompetent regulators will do something useless, treasonous, duplicitous and incompetent?


Mon, 11/28/2011 - 02:13 | 1920188 LeBalance
LeBalance's picture

and unregulated?

Mon, 11/28/2011 - 02:21 | 1920195 azusgm
azusgm's picture

and unindicted.

Mon, 11/28/2011 - 02:29 | 1920203 TruthInSunshine
TruthInSunshine's picture

Unregulated & not indicted?

John Corzine is special. He had the most savory Thanksgiving Day dinner with the fam, and then took his wife to Tiffany's for an apertif.

In most cases, when 600 million to 1.2 billion goes "missing," the person in charge of the place is - at bare minimum - detained and extensively interrogated.

But I'm sure that Corzine has an air tight alibi as to how he had no idea what was happening at MF Global nor where the client money is. /s


Mon, 11/28/2011 - 02:39 | 1920208 Catflappo
Catflappo's picture

Oh come on, it's not like Corzine is a 'rogue trader'. 

Now, those guys (all 3 of them) really are the pits -  I mean, losing it in a series of poorly monitored and foolhardy trades is surely substantially worse than, um, ahem, stealing it.   Surely ?



Mon, 11/28/2011 - 02:47 | 1920221 Diogenes
Diogenes's picture

When $600 goes missing the law will lock up the theif. When $600 million goes missing the theif will lock up the law.

Mon, 11/28/2011 - 06:06 | 1920316 solgundy
solgundy's picture

" change you can believe in "

Mon, 11/28/2011 - 16:55 | 1920862 Pegasus Muse
Pegasus Muse's picture

Barry Soetoro.  O'bummer.  La BOMBA.  The Banksters.Own.My.Black.Ass guy taking orders in the Whitehouse. 

Mon, 11/28/2011 - 03:55 | 1920271 Belarusian Bull
Belarusian Bull's picture


Mon, 11/28/2011 - 03:54 | 1920272 Belarusian Bull
Belarusian Bull's picture

I think the chance is 100%. Am i right?

Mon, 11/28/2011 - 04:42 | 1920287 Pitchman
Pitchman's picture

Popo:  I think you got this thing pegged!






Money Power And The Central Bank: Life Is But A MEME



”To the wicked, everything serves as pretext.” -Voltaire

Trillions of CDS with nothing to back it: Europe's Voluntary Haircuts?, CDS Market Sham & B of A: Less Than Zero

The Disappearance of Chivalry - George Santayana & Murder By Joystick

Everything Is Fine: Move On - There's Nothing Here For The 99%

MF Global is a fractal in a frying pan.


Mon, 11/28/2011 - 06:02 | 1920313 disabledvet
disabledvet's picture

it is possible to convert to Islam as well. Carried interest is against their God and punishable by death. it doesn't seem to have hurt their civilization in this epoch. to me though what is need is not to "end the Fed" by end the deceit. it is the mauling of the English language that shows "depraved indifference" to me. In short "i don't find this funny." of course i'm always told "don't you get it? THE JOKE'S ON YOU HAHHAHA!" For some reason that doesn't make me laugh. I hope i've given some of you few "in retaliation" as they say.

Mon, 11/28/2011 - 07:20 | 1920347 PonziBeaver
PonziBeaver's picture

Don't forget the corporate execs and directors who grant themselves options every year and sell 'em all to destroy shareholder value with the massive dilutions. They're just as sociopathic and corrupt as bankers. Corporate governance anyone? Can we do a bitch thread about that?

Mon, 11/28/2011 - 09:44 | 1920548 chubbar
chubbar's picture

The next treasonous act possible comes today when the Senate votes on S1867 which will allow our military to arrest american citizens on U.S. soil without charging them and hold them indefinitely. Nice group of folks looking out for our interests, wouldn't you say?

Mon, 11/28/2011 - 11:13 | 1920498 Widowmaker
Widowmaker's picture

All you piss boys complaining, do yourself a favor and kick a pinstripes ass. Shut the fuck up and make it personal.

Mon, 11/28/2011 - 01:09 | 1920106 TruthInSunshine
TruthInSunshine's picture



The Bernank loaned 7.7 trillion to all those banks who were claiming that they were just them!


They actually borrowed 1.5 trillion in just one day from the U.S. taxpayers, involuntarily extracted, by The Bernank & Gang.


Bring back the guillotines, bitchez.

Mon, 11/28/2011 - 01:27 | 1920133 Unprepared
Unprepared's picture

Trillions in handouts >>> Billions in profits?

Comon Bankers, that's all you could do? A .01% ROB (Return-on-Bailout) must be the worst industry banchmark, Sell signal.

Mon, 11/28/2011 - 01:36 | 1920144 rocker
rocker's picture

Never forget, Neel Kashkari and Hank Paulson, both previous GS employees engineered the Bailouts under Bush.

By taxpayers bailing out the above U.S. Taxpayers gave Lloyd Blankfein his 100 million dollar bonus.

Had they not bailed out Goldman. Lloyd would not have gotten his fraudulent bonus.

Why does America uphold banker's contracts and void labor's contracts.  

Goldman Sachs controls and rules the U.S., the Fed and the World.

Mon, 11/28/2011 - 11:12 | 1920872 Widowmaker
Widowmaker's picture

There is no such thing as "financial engineering" -- only fraud by another name.

But hey, whatever you want to call wealth redistribution upward (ONLY).

Mon, 11/28/2011 - 04:50 | 1920290 JungleJim
JungleJim's picture

ROT => Return On Theft


Mon, 11/28/2011 - 07:16 | 1920346 economics1996
economics1996's picture

The parasites need to get the fuck out of the way.

Mon, 11/28/2011 - 00:52 | 1920079 Lmo Mutton
Lmo Mutton's picture

What could possibly go wrong.

Mon, 11/28/2011 - 00:52 | 1920080 CitizenPete
CitizenPete's picture

gold bitchez

Mon, 11/28/2011 - 00:54 | 1920082 SHEEPFUKKER

PSSSSSSSST.  I have a secret.  I am going to F you in the A.   Pass it on.

Sincerely yours, 


Mon, 11/28/2011 - 01:13 | 1920097 SilverIsKing
SilverIsKing's picture

Sorry to break the news...that ain't no secret.

(Whoever gave me the -1 rating apparently enjoys being F'd in the A.)

Mon, 11/28/2011 - 02:18 | 1920192 JohnG
JohnG's picture

It's bankster bots and paid trolls junking most comments...

F them in the A, and wear them as badges of honor.

Mon, 11/28/2011 - 00:55 | 1920084 Seasmoke
Seasmoke's picture

and i dont believed they chopped heads off right away takes times for the reality of the abuse to set it.......we may be close to that point

Mon, 11/28/2011 - 00:55 | 1920087 Cdad
Cdad's picture

Can we please just get busy nailing plywood over the doors of these crooked banks...already?  To all you fools with your money in these institutions, thanks for NOT HELPING!

As always, the Greater American Depression will roll on and on until such time as the criminal syndicate of banks in this nation is finally shut down.  There will be NO capital formation as a direct result of these banks still being at the helm of the US financial system.

Enjoy your food stamps...

Mon, 11/28/2011 - 02:07 | 1920178 TruthInSunshine
TruthInSunshine's picture want to nail plywood over the windows to prevent the banksters from escaping before the ruckus begins.


May I suggest iron bars?

Mon, 11/28/2011 - 08:07 | 1920373 spankfish
spankfish's picture

+ 2 SNAP cards up

Mon, 11/28/2011 - 00:59 | 1920091 Tom Green Swedish
Tom Green Swedish's picture

Socialist. Unfair. Unamerican. Anti-Competitve. Crony-Capitalism

Mon, 11/28/2011 - 01:01 | 1920095 SHEEPFUKKER

American is the new Un-American my friend. 

Mon, 11/28/2011 - 06:04 | 1920315 disabledvet
disabledvet's picture

Amen Sheepfukker.

Mon, 11/28/2011 - 11:54 | 1921030 stirners_ghost
stirners_ghost's picture

Keep thinking in nationalistic and collective terms--it has served the sheep well so far.

Mon, 11/28/2011 - 09:40 | 1920533 swmnguy
swmnguy's picture

What's Socialist about it?  The merger of State and Corporate power is textbook Fascist, not Socialist.

Mon, 11/28/2011 - 11:46 | 1920998 stirners_ghost
stirners_ghost's picture

To each [banker] according to his need.

Mon, 11/28/2011 - 01:05 | 1920099 Divine Wind
Divine Wind's picture

My damn Comerica banker lied to me. Told me straight to my face their bank took nothing in the form of bailouts.


Mon, 11/28/2011 - 02:35 | 1920211 12ToothAssassin
12ToothAssassin's picture

Ignorance is bliss.

Mon, 11/28/2011 - 01:06 | 1920100 SillySalesmanQu...
SillySalesmanQuestion's picture

The Banksters need to be and guns bitchez.


Mon, 11/28/2011 - 01:22 | 1920127 tiger7905
tiger7905's picture

Eric Sprott update on gold out.



Mon, 11/28/2011 - 01:09 | 1920107 xcehn
xcehn's picture

KILL...KILL...KILL  comes to mind.

Mon, 11/28/2011 - 01:24 | 1920121 The Big Ching-aso
The Big Ching-aso's picture


Ya know for a second I thought fer sure you linked the Rod Steiger scene in Mars Attacks.     One of my faves.

Mon, 11/28/2011 - 01:10 | 1920108 Alienated Serf
Alienated Serf's picture

So disgusting.  If this is in bloomberg, it has a decent shot to hit the msm.  I wonder what excuses they will make for the fed. 

Mon, 11/28/2011 - 01:13 | 1920112 TruthInSunshine
TruthInSunshine's picture

Ali Veshi or whatever his name is on CNN will take The Bernank's word as being of integrity, and he'll parrot the words "Bernanke was worried that disclosing how much banks were taking, and identifying the banks taking the trillions, would mark them as targets for mean, bad short sellers."

cnBSc will be even more HopiumUnicornsRainbows from their assholes, claiming The Bernankio made it rain Bernankbux.

cnBSc Breaking News:  The Bernank is gonna make it rain.

Mon, 11/28/2011 - 10:02 | 1920619 NumberNone
NumberNone's picture

Fucking Fed.  We've got $7 Trillion of taxpayer future taxes sitting around to give to banks loans at .01% interest so that they can turn around and make loans to our governments and businesses at 5%+.  Our own money being used against us.  God forbid the fucking loan sharks not get their cut. 

Mon, 11/28/2011 - 01:12 | 1920110 indio007
indio007's picture

1. Borrow money from FED at 0%

2. Deposit borrowed money with Fed and reap .25%

3. ????

4 Profit!


Imagine getting paid to borrow money.....


FED says: Oh please borrow money from us ! We will PAY you interest!

Mon, 11/28/2011 - 01:33 | 1920138 Michael
Michael's picture

These are private companies traded on Wall Street receiving this free money to add to their balance sheets right? So all companies should get some free money too right, and every citizen should get some free money from the Fed too right? That's only fare.

Mon, 11/28/2011 - 01:58 | 1920164 Tom Green Swedish
Tom Green Swedish's picture

No. The bailouts are for the banks only. If the Fed gave the money to the people then the money would not end up in the banks.  

The banks need the taxpayer.  The banks are a part of the government now. If they gave the money to the people it would be like paying taxes and getting a check back for all socialist programs and taxes.  


My big problems with Social Security is the fact that if I die before I collect I DO NOT GET ANYTHING.  Why shouldn't I be able to decide what to do with my money? It appears its not really my work or my money.

Mon, 11/28/2011 - 02:31 | 1920206 Last_2_Sense
Last_2_Sense's picture

You have it backwards, goverment is a tool of the banks.

Mon, 11/28/2011 - 02:50 | 1920225 Quentin Daniels
Quentin Daniels's picture

Close.  Banks and governments are so tightly co-mingled these days that their behavior makes most sense if they are studied as a single entity that is privately owned by an obscure collective of thieving sociopaths.

Mon, 11/28/2011 - 02:03 | 1920171 Michael
Michael's picture

The Fed transfers $1 billion into my bank account (in one of their member banks) that I promise not to access and loans me the money at .025%. The fed then pays me interest to hold the money for them in excess of the original .025% and deposits interest payments into that same account. I promise to remove those funds in excess of the original $1 billion lent and spend the excess funds as I please.

Did I get that strait?

I'm still waiting for the Fed to make that deposit into my bank account

Mon, 11/28/2011 - 02:08 | 1920179 BorisTheBlade
BorisTheBlade's picture

It is only confusing if one thinks that Fed is supposed to represent the public. Quite contrary, if one assumes that the Fed is a privately owned organization that is supposed to provide its shareholders with highest return possible, then its actions make perfect sense.

Mon, 11/28/2011 - 02:27 | 1920199 Michael
Michael's picture

Depositors in those banks should get an equal share per account on those capitol gains in the form of higher interest rates on savings accounts and or a direct payment of the proceeds directly into their bank account.

The upper management or shareholders shouldn't get a dime of that money.

Mon, 11/28/2011 - 02:52 | 1920227 Michael
Michael's picture

My appetite for economic calamity porn is insatiable, as you probably already have surmised.

Dare I say I am falling in Love with CNBC World, the European channel, for actually having multiple gusts speak the the truth. For what seems decades I've been watching CNBC, mostly on mute these days, CNBC America looks like a Gorilla Trade Infomercial on mute. I've been waiting years to hear them speak the truth. I almost gave up hope, but thanks to Steve Sedgwick, hope has been restored. Still awaiting for CNBC America to follow suit.

Economic calamity porn on TV just for me. Yeah Baby.

Mon, 11/28/2011 - 03:36 | 1920259 Michael
Michael's picture

Thanks to the Ron Paul crew, we know how to put this pile of shit called America back together, but better than it was.

Mon, 11/28/2011 - 03:57 | 1920273 Michael
Michael's picture

I say we give first class airline accommodations to any illegal immigrant who wants to self deport using a government program fund for expenditure requests indiscriminate to illegals but also including.

We should also give them a $500 grant upon arrival to their destination for accommodations to last them a bit.

There, illegal imigration problem solved.

Do I have to think of everything?

Mon, 11/28/2011 - 04:17 | 1920280 Michael
Michael's picture

Can't wait to here what the State Department and the Congress Critters have to say on this past weekends Pakistan incident.

Blowback Bitches!

I'd love to hear Dr Ron Paul's take of this incident on the floor of The House of Representatives.

Mon, 11/28/2011 - 06:41 | 1920332 Abitdodgie
Abitdodgie's picture

I agree I live in North Dakota and those fucking Canadians are everywhere, get them out .Wait, do we ,are we, sorry we are talking about Mexicans

Mon, 11/28/2011 - 07:14 | 1920343 PonziBeaver
PonziBeaver's picture

Don't worry Abit, we won't steal your McJobs.

Canadians are rich as fuck on paper, since our real estate ponzi scheme is still bubbling.

Mon, 11/28/2011 - 04:14 | 1920278 BorisTheBlade
BorisTheBlade's picture

Depositors are at the bottom of this food chain being nowhere close to decision-making. They are being taken for a ride in a big game, but they will be thrown out of the cart the moment their value goes down to the extent they become liability to the system (i.e. demanding their fair share in a game that was never supposed to be rigged in their favor). Good thing or bad, but this game about to go belly up thanks to the fact that ponzi reached its highest point possible, i.e. the one that requires ZIRP in perpetuity to avoid collapse as there's no marginal value left in the economy that can be squeezed in favor of the cartel via expanding credit further.

Banks largely stopped lending, but that means no earnings to cover interest to be paid to depositors. And I don't think 0.25% margin goes anywhere, but plugging in black holes in the banks' balance sheets, CEOs salaries are chump change compared to the size of these black holes, deposits as well. Sane saver should stay away from the system that is eating itself from within, there is no safety or gains there left.

Mon, 11/28/2011 - 03:02 | 1920239 homer8043
homer8043's picture

I'm sure everyone here has seen this but why not a reminder. Better than any explanation I right now.

Mon, 11/28/2011 - 01:13 | 1920113 e2thex
e2thex's picture

Break out those Christmas bonuses. Rapture has arrived. 

And what 'bout Monday's action. Another fucking short-covering rally for the DJIA 600 peepuls.

Mon, 11/28/2011 - 01:14 | 1920114 lizzy36
lizzy36's picture

And why would we expect the banks and their behaviors to change.

The got rewarded, to the tune of billions in bonuses, for almost taking down the WHOLE world.

They learned a key lesson: Take huge risk, get a massive bonus, get bailed out when said risk goes bad, get a huge bonus. Rinse.Lather.Repeat.

300,000 people in the last two years, applied to Goldman for just this reason.

Amercians exceptionalism+crony capitalism=winning.

Mon, 11/28/2011 - 03:10 | 1920247 honestann
honestann's picture

amercian exceptionalism + crony capitalism = winning

Until all the seed stock is consumed, after which "winning" turns on a dime into massive death and destruction.  Coming very soon to a planet near you.

Mon, 11/28/2011 - 01:14 | 1920115 Misean
Misean's picture

If you loan me $1T of freshly printed FRN's I promise only to abscond as profits...0.1%. I'll do god's work with the rest.

Mon, 11/28/2011 - 01:48 | 1920152 azusgm
azusgm's picture

...and I will take said profits offshore so that my firm will have an effective tax rate below what the lowest wage slave pays in social security and Medicare taxes.

Mon, 11/28/2011 - 02:01 | 1920167 Tom Green Swedish
Tom Green Swedish's picture

The constituion and Socialist Security is like stealing. It is definitely not a Christian Principle.  Food Stamps are ok, but then again no company should profit off food if others are getting it for free.

Mon, 11/28/2011 - 02:11 | 1920183 azusgm
azusgm's picture

It is not okay that JPM is making a mint administering the food stamps programs and using Indians to do it. The USDA should be handling the ag dept's end and the states should be putting some of their own citizens to work and decreasing the SNAP roll instead of contracting with JPM. Jamie Dimon does not need a bonus for this.

Mon, 11/28/2011 - 02:20 | 1920194 TruthInSunshine
TruthInSunshine's picture

Goldman Sachs & JP Morgan, two of the biggest welfare recipients (not to mention they get to live above the law), have said absolutely no Beluga caviar at the Holiday Party this year.

Osetra & Sevruga only.

Mon, 11/28/2011 - 01:18 | 1920118 knukles
knukles's picture

On Bankers, Gold and Associated Conspiracy Theories.

I am absolutely getting so fucking tired of one day being called a conspiracy theorist, then being downgraded to extremist, giving way to no way that happened, becoming you gotta be kidding me, becoming well we already knew about that shit, finally terminating in what a crying shame why doesn't somebody do something about it.
And all the while the rape and pillaging by the bankers continues unabated.
Crying shame.

Just like one of my relatives studying at one of the premier agricultural universities in America telling me that in a course, they're reading scientific papers about airplane aerosol disbursement (spraying) of chemicals in the upper atmosphere. 
It's what the fringe conspiracy theorists have been calling Chemtrails.  Yes, studying them in University.  Chemtrails.

I am so fucking sick of this shit.
Just like nobody's trying to suppress the price of gold.

And then the Law of Unintended Consequences Chickens Come Home to Roost when the very same central banks start using gold as collateral against loans to raise money....  and will be hoping to pledge it at the highest possible prices. 

Just stop the shit.  It's becoming ever so tiring.

Mon, 11/28/2011 - 02:54 | 1920231 wisefool
wisefool's picture


I asked this in another thread. If TPTB are supressing the price of gold, isnt that a good thing for physical holders? Conspiracy or not? Honest question.

Mon, 11/28/2011 - 03:06 | 1920244 honestann
honestann's picture

Yes and no.  For existing holders, it greatly reduces the exchange value of the gold they hold.  For anyone looking to buy gold, it gives them a better purchase price.  So it depends on your situation and your goals... but no matter what, manipulation is blatantly unethical (and criminal).

Mon, 11/28/2011 - 03:45 | 1920269 wisefool
wisefool's picture

Thanks. Kinda like the real estate manipulation in reverse, distorting the market causes misallocation of resources. The saving grace for gold is that eventually they give up and the gold will still be good,  it will hold its value. Cant say that about alot of empty miami condos after 10 years. "Those couter tops are so  00's"

Mon, 11/28/2011 - 08:13 | 1920375 spankfish
spankfish's picture

I am recomending two shots of Limoncello and a ice cold beer... just do it!

Mon, 11/28/2011 - 01:19 | 1920123 philipat
philipat's picture

Banking used to be a respected and respectable profession. These fuckers have absolutely no shame and should be behind bars with plenty of time to contemplate that.

Mon, 11/28/2011 - 01:25 | 1920130 kito
kito's picture

Come on now everybody, they were just loans. And ben says nobody lost money....:)

Mon, 11/28/2011 - 01:27 | 1920134 Misean
Misean's picture

Lost? Come now. No one's claiming losses. I do believe that the point of the post was the size of the profits.

Mon, 11/28/2011 - 01:44 | 1920135 Divine Wind
Divine Wind's picture

I would love to see a TOTAL EXECUTIVE BONUS layer added to the Bloomberg chart.

This pisses me off.


Mon, 11/28/2011 - 01:35 | 1920143 TruthInSunshine
TruthInSunshine's picture

I just sent an email to The Bernank requesting a couple hundred billion in BernankBux and haven't heard back.

I even promised to pay The Federal Fractional Reserve Alchemists 4/10ths of 1 basis point in interest higher than what Goldman or JP Morgan paid.

Wish me luck (but I won't need it, because The Bernank will see that I'm paying a higher rate for my BernankBuxNINJAloan than the too-big-to-be-denied-the-privilege-of-ass-raping-American-taxpayers).

Mon, 11/28/2011 - 01:40 | 1920147 Misean
Misean's picture

Tell him you're gonna use the loan to buy...ummm...hire an ex-senator and apply to be a primary dealer. That should get you passed any potential roadblocks.

Mon, 11/28/2011 - 01:51 | 1920156 TruthInSunshine
TruthInSunshine's picture

I plan on buying precious with any Federal Reserve Notes he lends me at 2/10ths of a percent in interest.

Don't tell The Bernank, though; he is quite hostile to history.


"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."


--Alan Greenspan, 1966
Mon, 11/28/2011 - 03:02 | 1920240 honestann
honestann's picture

But then the predators-that-be offered him a prestigious job... and the rest is history.

Mon, 11/28/2011 - 01:59 | 1920165 Tom Green Swedish
Tom Green Swedish's picture

8 kleenex to open a doorknob and place a pink napkin on genitals.  Got it!

Mon, 11/28/2011 - 01:45 | 1920149 Flammonde
Flammonde's picture


When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte, Emperor of France, 1815


Mon, 11/28/2011 - 01:56 | 1920160 Caviar Emptor
Caviar Emptor's picture

Corporate Welfare State


The even dirtier secret: Bernank bailed out major US non-financial corporations. Had to with a frozen credit market. Just to open the doors in the morning they need to roll massive debt. Then after re-capitalizing the banks, the major non-financials also got recapped through secondary stock offerings and high-yield bonds financed through the Fed's little workers on Wall Street. That's what QE was all about: stealth recaps, very little to do with interest rates. 

One hand washes the other:


"Throughout the last century the attachment of businessmen to free enterprise has weakened dramatically as they discovered they could demand--and receive--short-range advantages from the state. . . . I watched with incredulity as businessmen ran to the government in every crisis, whining for handouts or protection from the very competition that has made this system so productive."

William E. Simon, Treasury Secretary 1974-1977

Mon, 11/28/2011 - 02:13 | 1920161 Temporalist
Temporalist's picture

Things are looking BULLISH!

The eurozone really has only days to avoid collapse

By Wolfgang Münchau

"Last week, the crisis reached a new qualitative stage. With the spectacular flop of the German bond auction and the alarming rise in short-term rates in Spain and Italy, the government bond market across the eurozone has ceased to function.

The banking sector, too, is broken. Important parts of the eurozone economy are cut off from credit. The eurozone is now subject to a run by global investors, and a quiet bank run among its citizens."


And how's China looking?

Daiwa say China Home Prices to Fall 30%

House prices in China’s top tier cities are likely to fall by 10 percent to 30 percent next year, exceeding losses in other cities amid higher prices and lower affordability, Daiwa Capital Markets said. Declines in the lesser 3 and 4 tier cities may drop by 5 percent to 15 percent in 2012, Daiwa analysts led by Danny Bao wrote in a report dated Nov. 25.


China's property market cooler, hard landing unlikely: analysts


China Home Prices Fall Most This Year as Curbs Drag Down Shanghai, Wenzhou





Mon, 11/28/2011 - 02:00 | 1920166 Excursionist
Excursionist's picture

Disclaimer:  If there were a cavalry charge on breaking up the largest five or ten banks (in an orderly fashion) to mitigate / eliminate systemic risk in the global economy, I would be the guy in the front with the flag.

That said, there's the reality we live in, the the Fed did what it did to keep the circus going for a bit longer.  Given all the Kyle Bass felatio performed here and general anti-establishment smartass quips I've read on this site's threads, I have to wonder how people here would actually function in a Mad Max type scenario, in which the top five were allowed to fail.  Think about it.  Your brilliant short positions?  Good luck collecting.  Hold physical?  In the basement of your Upper West Side walkup?  Even if so, then good luck feeding yourself with that barrel of Brent or American Eagle that will be taken from you at first chance by a shotgun-wielding dropout hillbilly without the Wharton background.

Kudos to Bloomberg for the NPV-negative chore of litigating this to the end and bringing light to just one murky corner of the U.S. government's dealings.  But people..  ease up on the teenage angst.

Mon, 11/28/2011 - 02:19 | 1920193 Sabibaby
Sabibaby's picture

You must be the banker... I'm the hobo with the shotgun!

Mon, 11/28/2011 - 05:57 | 1920311 UP Forester
UP Forester's picture

He must have a lot to lose, when and not if the Big 6 go down.  Down here at ant's-eye-view, the fall isn't going to be so bad, as long as you're stacking beans and bullets, too.

Mon, 11/28/2011 - 02:58 | 1920237 Diogenes
Diogenes's picture

You must be kidding. In the case of a bank failure the depositors' money is protected by FDIC insurance. Sound assets are taken over by other institutions. Bad assets and shareholders' capital liquidated as necessary. A slight bump in the road and the caravan moves on.

Except that the remaining bank are more careful about making foolish investments. Those who wish to destroy the country's long term future in exchange for short term profits are seen for what they are.

Mon, 11/28/2011 - 12:26 | 1921153 sschu
sschu's picture


What if they provided for an orderly restructuring based upon the rule of law?  What if the federal government decided to live within its means?  What if we realized how over committed we are to future entitlements and decided to accept a lower standard of living but to provide a future for our children?  What if we decided to convert these massive and TBTF financial institutions into "financial utilities" that operated within reasonable constraints and under strict supervision by responsible adults?  

Would there be pain, yes, but if this was the approach taken in 2008, the worst would be over by now, the economy would be recovering and the moral hazard of the unsustainable finances would be behind us.

But that would have taken leadership by our leaders ... is that too much to ask?



Mon, 11/28/2011 - 02:03 | 1920173 Tom Green Swedish
Tom Green Swedish's picture

It all has to do with the profit margins across all industries.  Some industries such as banks and food should not be profitable, they should only provide enough for wages and capital expenses and growth.  Look at one of the most profitable industries; insurance.  Is this really necessary?  Why should insurance companies profit? 

Mon, 11/28/2011 - 02:04 | 1920175 reader2010
reader2010's picture

Everyone who is honest, hard-working and follows the laws is fucked. 

Mon, 11/28/2011 - 02:04 | 1920176 Schwantz
Schwantz's picture

Hmmm.... Canadian Banks are fairly high on that list...interesting.

Mon, 11/28/2011 - 02:05 | 1920177 Georgesblog
Georgesblog's picture

We knew this in 2008. In fact, I wondered in the '70s how politicians managed to find time to line their own pockets, because they were so busy, lining their friends pockets. Every bailout continues the biggest wealth transfer in the history of the world.

Mon, 11/28/2011 - 02:15 | 1920180 sasebo
sasebo's picture

So the entrepreneurs & their workers are producing plenty of food, clothing, shelter, transportation, energy & health care for everyone but the useless assholes.

And the fed's printing & creating plenty of paper & computer money to use as a medium of exchange & store of value & giving it to the banks to lend to anyone who wants to buy some of that food, clothing, etc. the workers are producing. The fed is also giving plenty of paper & computer money to the guvmunt to give to those who vote for them so they can buy some of that food, clothing, etc produced by the workers.

What's the big problem?

Of course only the paper & computer money equal to the total production of the entrepreneurs & their workers is backed by anything. The rest of it is worthless. If you don't think so try to buy some food, clothing, etc. with it.

Mon, 11/28/2011 - 02:18 | 1920187 Tom Green Swedish
Tom Green Swedish's picture

Dick Fuld had the treasury straight pegged to just like Ken Lewis.  Sounds like insider information to me (4-they want to kill the bad HFnds + heavily regulate the rest).  Little did he know he was one of the "bad Hfnds"


The House Committee on Oversight and Government Reform also released the following E-mail from Richard Fuld, the CEO of the now bankrupt Lehman Brothers. In it, Fuld offers his “takeaways” from a dinner with Treasury Secretary Henry Paulson.

NOTE: copy of email is listed at link.

FROM: Fuld, Dick (
SENT: Saturday, April 12, 2008 2:52 AM (GMT)
TO: Russo, Thomas A. (

Just finished the Paulson dinner.
A few takeaways//
1-we have huge brand with treasury
2-loved our capital raise
3-really appreciate u+Reiders work onm ideas
4-they want to kill the bad HFnds + heavily regulate the rest
5-they want all the G-7 countries to embrace
Mtm stnds
Cap stnds
Lev + liquidity stnds
6-HP has a worried view of ML
All in all worthwhile

Mon, 11/28/2011 - 02:28 | 1920202 tkinfo
tkinfo's picture

Who the heck is surprised by this? How else does the gov transfer the wealth to sustain the Zombie banks?. C'mon guys...

Mon, 11/28/2011 - 02:31 | 1920205 indio007
indio007's picture

Here's some food for thought... Is TARP and all the other bailouts that benefitted only banks simply an Odious Debt?

Mon, 11/28/2011 - 03:20 | 1920250 Kali
Kali's picture


Mon, 11/28/2011 - 02:34 | 1920209 trimtrac
trimtrac's picture

Welcome to the United Socailist states of America, the worlds' largest police state. Did we win?


Mon, 11/28/2011 - 02:58 | 1920228 Vic Vinegar
Vic Vinegar's picture

That was the dumbest fucking post I've ever read. 

You have no idea how mindfucked you are, do you?  Fuck you, you leave.

Where is baby_BLYTHE when you need her?  Times are tough indeed.

Mon, 11/28/2011 - 03:18 | 1920249 Vic Vinegar
Vic Vinegar's picture

Let's mix it up tonight junker.  Here's something for the whole family...

For dad, a blast from the past from B9K9:

I keep telling everyone that both the Fed's monetary &'s fiscal policies were strictly short-term in nature. When pundits say 'extend & pretend', guess what, it really was about temporarily extending & pretending until the "real" underlying economy began once again experiencing organic growth.

Ben's jawboning helicopter talk was bullshit, nothing more - simply printing money does nothing. Monetarism was/is all about changing perceptions - flood people with enough cash in order to get them to change/revert behavior (ie the 'green shoots' propaganda campaign).


The only chance was 2008. But if $24T (give or take a few Ts) didn't do it 2 years ago, it's over, done. The hail mary pass was incomplete and the clock ran out. It's not the amount, it's the psychology.

Chick Hearn, the late Laker announcer, used to try and call blow outs as early as possible with his "This game's in the refrigerator: the door is closed, the lights are out, the eggs are cooling, the butter's getting hard, and the Jell-O's jigglin'!

Ilargi @ TAE called it a few weeks ago; Mish joined him today with his "That's all folks". Denninger is still hedging, but will probably break within days/weeks with a flat-out declaration.

Drop the Hollywood imagery of drama & suspense. The next decade(s) is just gonna be a grind while we de-lever and work through the malinvestment.

And for mom, here's a Katy Perry vid:

And if you are getting paid to be here, have fun inciting violence!  It's only going to lead to more Katy Perry videos from me.

Mon, 11/28/2011 - 02:35 | 1920213 Milton Waddams
Milton Waddams's picture

The manner of the document dump - tens of thousands of unorganised documents - is damning in its own right.  If the Fed had nothing to hide (LOL), it would have worked with investigators / journalists.  The greatest fiat heist in the history on the world happened and No. One. Cares.  

Mon, 11/28/2011 - 02:43 | 1920218 Divine Wind
Divine Wind's picture

Well, when you put it that way...

Mon, 11/28/2011 - 02:41 | 1920216 El Gordo
El Gordo's picture

European Bailout Plan - The more people we can get to pee in the bed to keep warm, the longer it will be until we finally freeze our asses off.

Mon, 11/28/2011 - 02:48 | 1920223 Tom Green Swedish
Tom Green Swedish's picture

When is Dexia going to pay the US taxpayer back?


The biggest U.S. banks avoided the discount window, the Federal Reserve's 97-year-old last-resort lending facility, partly out of concern that tapping it might brand them as weak. Dexia SA, a lender to local governments in Belgium, showed no such reservation. The bank, based in Brussels and Paris, was the discount window's biggest borrower during the crisis, tapping it for $37 billion in December 2008. Dexia simultaneously borrowed $21.5 billion from temporary Fed programs that were primary sources of emergency funding for U.S.-based Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. In all, Dexia owed about 120 billion euros ($168 billion) to central banks at the end of 2008. As of June 30, 2011, it still had 34 billion euros of central-bank funding.

Mon, 11/28/2011 - 03:14 | 1920248 Temporalist
Temporalist's picture

Everything is going to be fine now:

Obama to press EU leaders over debt crisis

"President Barack Obama will press European Union officials on Monday to reach a definitive solution to their sovereign debt crisis which is emerging as a major 2012 U.S. election worry."

Mon, 11/28/2011 - 03:33 | 1920260 manodedios
manodedios's picture

and this is news, because?

Mon, 11/28/2011 - 03:43 | 1920266 The Squid
The Squid's picture

Who in their right mind would pay back money lent to them at 0% interest?

Sounds more like a gift to me...


Mon, 11/28/2011 - 08:48 | 1920432 GMadScientist
GMadScientist's picture

That's what Greece said!

Mon, 11/28/2011 - 04:41 | 1920267 Temporalist
Temporalist's picture
Morgan Stanley Cuts 2012 Global Growth Forecast Again

"The continuing uncertainty over debt troubles in Europe and the U.S. has increased the downside risks to global growth, according to Morgan Stanley. The bank downgraded its forecast for global growth next year to 3.5 percent from 3.8 percent, just three and a half months after it cut its forecast from 4.5 percent."


BCC Cuts U.K. Economic Growth Forecasts, Sees Recession Risk

"The British Chambers of Commerce cut its U.K. economic growth forecasts and said the risk of another recession “cannot be shrugged off,” predicting the Bank of England will add to its bond-purchase plan early next year."





Mon, 11/28/2011 - 03:59 | 1920274 lunaticfringe
lunaticfringe's picture

You talk about tin foil wearing fringe blogs like they are a bad thing. I'm fixing to kick some one's ass.

Mon, 11/28/2011 - 04:04 | 1920275 caerus
caerus's picture

there will be no sorrow...for numbers have no mercy...

Mon, 11/28/2011 - 04:02 | 1920277 Temporalist
Temporalist's picture

Italian 2yr Bonds hit 8% for first time in history...

Mon, 11/28/2011 - 04:16 | 1920279 non_anon
non_anon's picture

the gift that just keeps on giving

Mon, 11/28/2011 - 04:30 | 1920284 topcallingtroll
topcallingtroll's picture

This is one of many reasons that decent law abiding people are genuinely thinking about taking the law into their own hands and getting those bankers anyway they can.

As I mentioned before I will build a statue and a shrine for anyone who can bring a measure of justice or at least revenge. They need to be worried, fearful, and looking over their shoulder.

They need to be afraid to say publicly where they work, for fear of what may happen if the next table hears it.

Because it appears otherwise there is nothing anybody can do about the brazen level of criminality and subsequent socialization of losses.

Mon, 11/28/2011 - 05:02 | 1920295 XtraBullish
XtraBullish's picture

Tyler : Time to cover all those ZeroHedge shorts.

Mon, 11/28/2011 - 08:47 | 1920429 GMadScientist
GMadScientist's picture

XtraBullish : Time to stop huffing inhalants.

Mon, 11/28/2011 - 05:06 | 1920297 fiftybagger
fiftybagger's picture

Silver Update - Silver History


Silver Update 11/26/11 Silver History Part 1

Silver Update 11/27/11 Silver History Part 2

Mon, 11/28/2011 - 05:45 | 1920306 HD
HD's picture

As I write this, Dow futures are up 241 points - this is ENDLESS. This entire week CNBC will be shouting from the rooftops about Black Friday sales (fueled by a new mountain of Citi and BOA sub prime credit flooding every mailbox).  World Economy is fixed apparently - again. Somehow. Don't do the math.

Mon, 11/28/2011 - 06:48 | 1920333 PaperBear
PaperBear's picture

So while the American taxpayer drowns in debt the American big banks drown themselves in profits from putting that debt on the American taxpayer. Do I have this correct ?

Mon, 11/28/2011 - 07:14 | 1920344 nmewn
nmewn's picture

Correct. Alms...alms for the poor Wall Street

Meanwhile, in the next episode of keeping up with the Crashdashians...

Mon, 11/28/2011 - 06:49 | 1920336 I am Jobe
Mon, 11/28/2011 - 07:06 | 1920341 say_jet
say_jet's picture

I find in interesting that the Tarp funds were exactly a fraction of the money actually lent to the banks by the FED....almost like a good faith deposit.  It's too suspicious, and if anyone one out of the government or the FED expects us to take what they say as face value anymore then they are living a dream.  

Mon, 11/28/2011 - 08:05 | 1920372 twotraps
twotraps's picture

exactly, unfortunate but true.  Whats worse is that since the sky did not actually fall....everyone thinks they did a great job and people just shuffle along.  totally sick.  trying to discuss the health of the banks with people and all they talk about is 'Valuations', I just ask them how exactly they are valuating anything when they don't have a clue about their balance sheet?  Its become a silly game, very little matters....


We all know the FED pace can be glacial and criptic.  This shows how fast they are willing to move their sorry-asses when the current economic structure is threatened.

Mon, 11/28/2011 - 07:50 | 1920365 Coldfire
Coldfire's picture

Over $13bn profit was 'appropriated' during the crisis with Citi and BofA among the largest profiteers.

....and they are still zombie losers.

Mon, 11/28/2011 - 07:52 | 1920367 Ted Baker
Ted Baker's picture









Mon, 11/28/2011 - 08:13 | 1920376 goldstandard
goldstandard's picture

Our government and banking in this country is just fucking stupid for their own good. Our do nothing Congress should pass a very simple law. If a private bank makes money with my money ( tax payer funds and overnight deposits ) then the money you make using my money belongs to me. Because it stands to reason that if you didn't have my money to play with in the first place, you wouldn't have made a profit.

Sorry.. that would require an AMERICAN govt.. all we have are a bunch of bought and paid for Globalist Prostitutes who have already sold their souls to get where they are and are busy selling our country down the river. Seriously, this shit has got to stop.

Mon, 11/28/2011 - 08:45 | 1920426 GMadScientist
GMadScientist's picture

As future historians discuss this period, they will not be heard discussing "bailouts" as much as "looting" and "larceny" and the bankers' unique position as the genus of the end of the age of finance.


Mon, 11/28/2011 - 08:52 | 1920438 goldfreak
goldfreak's picture

but didn't Erin tell us the government made money on the bailout? Should I not believe her?

Mon, 11/28/2011 - 09:46 | 1920551 PulauHantu29
PulauHantu29's picture

'Making money the good 'ole fashion American way...Stealing it!"

lmao. From ZH's "News that Matters":

The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.  The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergencyloans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

Mon, 11/28/2011 - 11:17 | 1920885 realitybiter
realitybiter's picture

Gosh, that was just coincidentally right about the time that pig fucker Stephen Friedman bought his big Goldman "Christmas fun money" stock....just a hunch....


How the FUCK does this not get prosecuted?  Our justice system is on its knees with the Bankers hands around the DOJ's head.  Take it all, bitch.

They literally, figuratively, and legally SUCK!!!!

Mon, 11/28/2011 - 13:17 | 1921365 end da fed
end da fed's picture


Mon, 11/28/2011 - 10:02 | 1920620 Downtoolong
Downtoolong's picture

quite a gift

And since the gift came from a quasi public institution which the banks effectively control, that makes it theft.


Mon, 11/28/2011 - 11:06 | 1920854 realitybiter
realitybiter's picture

Folks need to figure this shit out so the next "plan" actually helps them.

If not, we are 8 years from our new Hitler.

Mon, 11/28/2011 - 11:35 | 1920950 realitybiter
realitybiter's picture

To all the idiots that think Ron Paul is a nut here is a little back of the napkin math for you:

$8 trillion / 4 years / $50,000 a job per year =

40 million. 40m 50k jobs for four years.

or infinite ball manicures for Jon Corzine.  geeez this is a tough one. 

forty million jobs paying 50 large a year would get a lot of stinky people out of the parks.  I am not suggesting that we simply give the money.  But saving the bankers jobs and bonuses has to be one of the most RETARDED abuses of capital ever.

At least war employs a lot of people, albeit temporarliy...


is there any wonder why they tried to hide this??????????????

Do NOT follow this link or you will be banned from the site!