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Visualizing What $1.2 Trillion In Secret Fed Bailouts To The Banking Kleptocracy Looks Like

Tyler Durden's picture


While Bloomberg has done a tremendous job of digging through 29,346 pages of FOIA data, its discovery is not at all surprising: that Wall Street's (not to mention the rest of the world's) biggest banks received a total of $1.2 trillion in previously secret Fed loans, in addition to the trillions in public backstops and loans from the US Treasury. As a reminder, "denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools." The best summary of this ongoing collusion between the Fed and Wall Street, in which it once again for the nth time becomes clear that all the Fed cars about is making sure its banking masters are never impaired, is from the article itself: "Even as the firms asserted in news releases or earnings calls that they had ample cash, they drew Fed funding in secret, avoiding the stigma of weakness." And there you have it: everything that come out of Wall Street is and has always been a lie: either courtesy of 30 years of great interest rate moderation, in which only cheap money adds to banks' top and bottom lines, or due to the Fed making sure the same banks never suffer a dollar loss when central planning fails, such as it does increasingly often lately (and forget about 10(b)-5 violation charges coming from the corrupt regulators: after all they are all in bed together). That Morgan Stanley, Dexia and Citi are, and have been since 2008, dead men walking, is by now known to all financially literate readers: additional confirmation can be found in the Bloomberg article, which we won't paraphrase because it has all been said over and over. That said, Bloomberg has done a great visual interactive chart summary of who got what, when, how much, over peak and average metrics and so forth. We urge readers to play around with it (don't worry, it won't break the banks; and if it does the Fed will secretly bail them out again) and every time they consider putting money into our "solvent" financial system.


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Sun, 08/21/2011 - 23:10 | 1584893 The Shootist
The Shootist's picture

Shockwaves, bitchez!

Sun, 08/21/2011 - 23:55 | 1584984 zorba THE GREEK
zorba THE GREEK's picture

As I have posted over and over on ZH; The Feds first mission is to protect the money of the ultra-wealthy banking families.

The Fed was created by and is still part of the private banking system. And it should be obvious by fact that they bailed out

the banks in 2008 and did nothing to help the homeowners, that their mandate is to preserve the wealth of the wealthy.

Mon, 08/22/2011 - 00:29 | 1585033 IQ 145
IQ 145's picture

Flash news update; I short the US Treasury Bond Contract now at 140-04; basis Sept. on the CME. More follows. This market is absurdly over-bought, and I intuit that it is "breaking". Stop loss at 141-16.

Mon, 08/22/2011 - 05:18 | 1585225 Nate H
Nate H's picture

I predict you will be stopped out by Tuesday. The market is breaking but not that market...

Mon, 08/22/2011 - 06:47 | 1585275 nmewn
nmewn's picture

Oh noes!...Krugmaaannn!!!

"NEW YORK -- The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.

The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases."

Mon, 08/22/2011 - 06:56 | 1585281 GetZeeGold
GetZeeGold's picture


Ummm excuse me....but why the F#$@ is Benny sending US taxpayer money to foreigners?


Mon, 08/22/2011 - 07:23 | 1585320 Sudden Debt
Sudden Debt's picture

So we can spend it all on our paid 7 weeks of vacations and hopefully for you guys some of it in the US.

It's called the drip down effect.


Mon, 08/22/2011 - 07:48 | 1585348 Dr. Richard Head
Dr. Richard Head's picture

Oh! So that is what a golden shower is. I get pissed on and am supposed to feel wealthy. Nice...

Mon, 08/22/2011 - 08:34 | 1585433 cossack55
cossack55's picture

Not foreigners, Fed. Reserve members.

Mon, 08/22/2011 - 08:17 | 1585332 Bob
Bob's picture

"Professional economists"--who do these people serve again?  And yet, even with that being the case, only a very slim majority (56%) support what would seem to be your position, nmewn. 

Funny we don't hear a word about this alternative budget plan:

Mon, 08/22/2011 - 12:29 | 1586340 RockyRacoon
RockyRacoon's picture

The economists will talk the book of the last financial firm that funded a chair at their institute of "higher learning".

Mon, 08/22/2011 - 18:54 | 1588057 nmewn
nmewn's picture

A 19 point spread is not anything I would term as "only a very slim majority", Bob ;-)

The closest minority in this poll want equal parts cuts & tax increases. We have a budget deficit of >>>1.5 trillion<<< Benny bucks. Do you have any idea what an "equal parts" tax increase of 750 billion Benny bucks would do to this O-conomy?


The bottom minority are clearly moonbats and deserve no comment at all.

Mon, 08/22/2011 - 19:16 | 1588142 jmc8888
jmc8888's picture

Yeah and not one of those clueless economist (all of them that took part in that asinine survey concluding nothing) about noticing it's all fraud and cancelling it?

Oh yeah.  Because the answer isn't to....





Thus entire question is bogus that the economists answered and served no purpose whatsoever.

Only fucking idiots want to cut spending for fraud.

Only fucking idiots want to tax for fraud.

Only fucking idiots want to print for fraud.

I think that pretty much covers all the economists in that survey of nothing.


Glass-Steagall, because the printers, taxers, and cutters are the batshit crazy ones.  THEY are the ones holding everybody hostage.


Hostage for what? Oh yeah, fraudulent debt.

Mon, 08/22/2011 - 20:34 | 1588338 Bob
Bob's picture

Okay, misspoken.  Barely more than half.  The seeming full range of options provided the economists lacked substance altogether and ignored others as if they did not exist.  Wall Street prosecutions and appropriate claw backs, for instance, or breaking up the insolvent TBTF's or quickly dropping the wars.  For a simple-minded poll, it was appropriate for professional economists, I guess. At least from what I see of them on Teevee, though when I was in school I met none who thought in such simple terms.  

But then they didn't write the question and forced choices, did they? Sounds like an undergrad student to me. 

Moonbats--funny!  That was simple. 

Oh, yeah--you don't like taxes!  ;>)

Mon, 08/22/2011 - 07:40 | 1585335 my puppy for prez
my puppy for prez's picture

I love Ron Paul's idea :  He says that since over 1 trillion of the debt is from the FED "lending" us printed fiat and is worthless, then we really owe NOTHING, and should strike that from the books!  


Mon, 08/22/2011 - 13:20 | 1586554 RockyRacoon
RockyRacoon's picture

Odious debt.   They did NOT have my permission; in fact, they have my protestations in writing.

I say we burn the debt and hang Greenspan.   Nuremberg trials anyone?

Mon, 08/22/2011 - 00:35 | 1585043 rambo1028
rambo1028's picture

WOOT WOOT! Arrows are back!

Mon, 08/22/2011 - 01:09 | 1585068 iNull
iNull's picture

Zorba. no disagreement, but are you sure these villains are capable of such a vast conspiracy? Frankly, I find them gross incompetents.

Mon, 08/22/2011 - 01:17 | 1585073 Michael
Michael's picture

Such large scale sections of US society, isolated from what is going on in reality. That's our problem.

Mon, 08/22/2011 - 02:02 | 1585102 Michael
Michael's picture

Thank God Libyan rebels captured the country before USA/NATO thugs did.

Mon, 08/22/2011 - 02:09 | 1585113 Enkidu
Enkidu's picture

Er... I think US/NATO thugs are still (and will remain) there... the rebels are simply instruments.

Mon, 08/22/2011 - 03:35 | 1585108 Quixotic_Not
Quixotic_Not's picture

As I have posted over and over on ZH;

Dood, you've been posting on ZH for like 12 weeks...LOL

Hmmmm....Agent Provocateur working on cred?

Remember, as twisted as Chairsatan Bernank is, there are some even sicker bankster puppies out there...

Mon, 08/22/2011 - 08:48 | 1585480 Eugend66
Eugend66's picture

True Dat, there is no other economy big enough for them to hide into. May the Hell host them well.

Mon, 08/22/2011 - 09:28 | 1585593 G-R-U-N-T
G-R-U-N-T's picture

"In The Law, Bastiat explains that if the privileged classes use the government for "legalized plunder" this will encourage the lower classes to revolt or use socialist "legalized plunder" and that the correct response to both the socialists and the corporatists is to cease all "legalized plunder". Bastiat also explains why his position is that the law cannot defend life, liberty and property if it promotes socialist policies. When used to obtain "legalized plunder" for any group, he says, the law is perverted and turned against the thing it is supposed to defend.[8]"

Per William Black...

Mon, 08/22/2011 - 00:04 | 1585001 MacGruber
MacGruber's picture

RAGE bitchez! The roof, the roof, the roof is on fire...

Mon, 08/22/2011 - 01:13 | 1585072 iNull
Mon, 08/22/2011 - 03:26 | 1585141 TzaristBondHolder
TzaristBondHolder's picture

Hmmm.....what shockwaves?  I just looked at and it shows dax down 100% to 0.  Interesting!


Is DAX still alive?


Mon, 08/22/2011 - 04:00 | 1585159 waylon153
waylon153's picture

Took me a while to find it, but it's there......Harley Davidson.  That's right, Harley Davidson.  

Good thing too, because if anyone is TBTF it's....(wait for it)......Harley Davidson.

Looking at this list makes you realize how hard the fall is going to be.  EVERYBODY is sucking from the teat of the FED!!!!

Mon, 08/22/2011 - 05:51 | 1585246 Kiwi Pete
Kiwi Pete's picture

Yeah, even National Bank of Saigon got $10mil. Byegones!!

Sun, 08/21/2011 - 23:14 | 1584898 scatterbrains
scatterbrains's picture

Where are the share holder lawsuits ?

Sun, 08/21/2011 - 23:38 | 1584948 eureka
eureka's picture

Where are the share holders? Wall Street/U.S. stocks are symbols and instruments of U.S. Empire; most U.S. citizens own no stocks, consequently the U.S. stock market is pumped up, not just for the sake of banksters, but for the maintenaince of U.S. Empire overall, orchestrated by the elite behind Wall Street and Pentagun, with full and obvious buy-in from all its high level henchmen and beneficiaries.

Hence no lawsiuts. Only more bank directed stimulus to come, which btw isn't Keynesian, but fascist.

Mon, 08/22/2011 - 12:58 | 1586489 Raymond K Hessel
Raymond K Hessel's picture

Keynes is a fascist. A big flaming fascist

Sun, 08/21/2011 - 23:13 | 1584899 Cistercian
Cistercian's picture

No wonder it took a FOIA request to get!Theivo-matic in action!!

Sun, 08/21/2011 - 23:14 | 1584905 JW n FL
JW n FL's picture

Americans are to, too fucking stupid to care and or do anything about it... AGAIN!

Sun, 08/21/2011 - 23:25 | 1584920 Problem Is
Problem Is's picture

Amerikans are stupid because they watch and believe TeeVee, believe their useful idiot politicians are the real leaders in charge, eat GMO Franken-food that ravages their brains and bodies and take psycho-drugs and vaccines from Merck, Pfizer et al...

And as a result... buy the "Amerikan Dream" hook, line and sinker...

How could they not be fucking stupid???

Sun, 08/21/2011 - 23:25 | 1584925 SilverIsKing
SilverIsKing's picture

American #92,357,544 checking in.  I agree with your assessment.

Sun, 08/21/2011 - 23:51 | 1584961 baby_BLYTHE
baby_BLYTHE's picture

Alan Greenspan: No agency of government can overrule actions the Federal Reserve takes. We do what we want, nothing else matters.

In other words, the Federal Reserve System is a government onto itself. No more 'Federal' than Federal Express, as they say.

Mon, 08/22/2011 - 00:01 | 1584996 Sock Puppet
Sock Puppet's picture

That is right.  Our gov reps decided that they did not want the responsibility.  Must have been too complicated.  Look at that shit stain Pete Stark.  He said the more debt we have the wealthier we are. WTF?

These are the squirt sticks Americans have chosen to represent them.


Mon, 08/22/2011 - 00:21 | 1585027 macholatte
macholatte's picture

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.
Alan Greenspan

Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.
Milton Friedman


Mon, 08/22/2011 - 13:29 | 1586592 RockyRacoon
RockyRacoon's picture
Odious debt

In international law, odious debt is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

When a despotic regime contracts a debt, not for the needs or in the interests of the state, but rather to strengthen itself, to suppress a popular insurrection, etc, this debt is odious for the people of the entire state. This debt does not bind the nation; it is a debt of the regime, a personal debt contracted by the ruler, and consequently it falls with the demise of the regime. The reason why these odious debts cannot attach to the territory of the state is that they do not fulfill one of the conditions determining the lawfulness of State debts, namely that State debts must be incurred, and the proceeds used, for the needs and in the interests of the State.   Odious debts, contracted and utilized for purposes which, to the lenders' knowledge, are contrary to the needs and the interests of the nation, are not binding on the nation – when it succeeds in overthrowing the government that contracted them – unless the debt is within the limits of real advantages that these debts might have afforded. The lenders have committed a hostile act against the people, they cannot expect a nation which has freed itself of a despotic regime to assume these odious debts, which are the personal debts of the ruler.

Mon, 08/22/2011 - 14:31 | 1586942 JW n FL
JW n FL's picture


Federal Reserve Secretly Gave $1.2 Trillion In Taxpayer Funds To The Banks That Caused Crisis

Mon, 08/22/2011 - 00:17 | 1585021 IBelieveInMagic
IBelieveInMagic's picture

Reality is net net the US of A benefited from this arrangement but divvy of the loot was not even. Hence all the teeth gnashing.

Mon, 08/22/2011 - 00:34 | 1585042 Incubus
Incubus's picture

I was speaking to some guy at work about the economy a while ago:  he said he didn't want to think about that kind of stuff.


lol, whatever.  I hope this depression is a very painful one.  These dumb masses will not learn otherwise.

Mon, 08/22/2011 - 09:47 | 1585656 pods
pods's picture

That sums it up perfectly Incubus.  People do it to themselves.  It is not some grand conspiracy, but willful self deception.  Just too difficult to think that maybe the real problem is staring back from the mirror.

So, we get bread, circus, and blowing up all the brown people who are sitting on top of our oil.  All the while eating hot dogs, drinking beer, and flag waving that we are the light of the world.  I actually have no problem with people aciting like that, but don't start down the "land of the free" road.  It is an empire, plain and simple.  Love it or hate it, no difference, but at least admit it.


Sun, 08/21/2011 - 23:15 | 1584907 ironymonger
ironymonger's picture

"Congress required the disclosure after the Fed rejected requests in 2008 from the late Bloomberg News reporter Mark Pittman and other media companies that sought details of its loans under the Freedom of Information Act."

Other media companies? Why is Bloomy so coy?

Sun, 08/21/2011 - 23:17 | 1584910 vast-dom
vast-dom's picture

some more scary in-line shit: obummer pressures Attorney General of N.Y. on Bank Foreclosure Deal:



Mon, 08/22/2011 - 07:50 | 1585351 Bob
Bob's picture

Thanks for the update! 

Ms. Wylde [a member of the board of the Federal Reserve Bank of New York who represents the public] said in an interview on Thursday that she had told the attorney general “it is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street — love ’em or hate ’em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.”

WTF can be said about that? 

Mon, 08/22/2011 - 09:57 | 1585700 pods
pods's picture

No more talk about legal, illegal.  Merely defensible or not.  Sheesh, if that is the requirement we are doomed.

"But honey, I had to sleep with her, she was drunk and was going to sleep with someone.  I was way nicer than those other guys and didnt want her to get hurt.  So it was best if I did it."

Funny oxymoron too.  A FED rep who represents the public.  ROFLMAO!


Mon, 08/22/2011 - 12:45 | 1586425 Bob
Bob's picture

I can't remember the last time I saw so much bullshit packed into a single sentence!  Unreal.  Or, should I say, too fucking real. 

Sun, 08/21/2011 - 23:20 | 1584914 Eireann go Brach
Eireann go Brach's picture

Obama is heard up at Martha's saying, "so what does this mean, where is the money now" because what the fuck does he know about the financial system apart from the fact that he gets his campaign money from there!

Sun, 08/21/2011 - 23:21 | 1584915 XRAYD
XRAYD's picture

Why does Bloomberg say this shovelling of taxpayer money to the banks was to avoid a "depression"?


Call it what it was/is, a cover up of massive theft by the banks .. of the American peoples past and future savings and earnings! Which has now enslaved millions, and destroyed their futures!





Sun, 08/21/2011 - 23:30 | 1584937 Sock Puppet
Sock Puppet's picture

What are you talking about?  Citi delivered an 8 billion dollar profit to the American Tax Payers.  We should be lending a hell of lot more to the banks than to the Fed Gov with returns like that.

Sun, 08/21/2011 - 23:39 | 1584954 PicassoInActions
PicassoInActions's picture

They borrow the strong dollar and return a weak dollar and that would be concidered a profit?


Sun, 08/21/2011 - 23:51 | 1584976 Sock Puppet
Sock Puppet's picture

What kind of return are you getting on all the trillions you are lending to the gov?  None.  You just get to commit your future income and your children's future income to pay it back.  I suppose those will be weaker dollars as wll though.

Sun, 08/21/2011 - 23:56 | 1584985 PicassoInActions
PicassoInActions's picture

When poeple saying goverment spents a lot... i agree, but most of the goverment spending are private contracts for private corporations.

So when we argue to stop goverment wasting, we are saying at the same time stop giving money to corporations , since all those dollars do end up in their pockets. Catch 22.



Mon, 08/22/2011 - 08:31 | 1585424 Eugend66
Eugend66's picture

But, but ... 'corporations are People, my friend'.

Mon, 08/22/2011 - 02:31 | 1585123 sasebo
sasebo's picture

Don't tell us about this meaning crap. Tell us what Citi produced, like in food clothing, shelter, transportation, energy & health care. Citi is a bunch of useless assholes. Paper money don't produce shit. The economy isn't about paper money, it's about stuff. Wise up.

Mon, 08/22/2011 - 13:34 | 1586607 RockyRacoon
RockyRacoon's picture

Citi delivered an 8 billion dollar profit to the American Tax Payers.

They delivered $8B to the government to squander, which Citi TOOK from the American people thru financial shenanigans.   Would you like to reconsider your position?

Sun, 08/21/2011 - 23:24 | 1584916 TruthInSunshine
TruthInSunshine's picture



Wall Street & The Federal Reserve Bank:

Thick as thieves, like white on rice, more cancerous than absestos filter cigarettes, bitches.

Give Wall Street more tax dollars, Bernank & Geithner! Do it!

Sun, 08/21/2011 - 23:58 | 1584947 macholatte
macholatte's picture

due to the Fed making sure the same banks never suffer a dollar loss

Why the surprise and indignation? Wasn't the Fed created in the first place to do exactly as it has done, layoff the bad deals the bankers make onto the tax payers? C'mon. Greenspan & Benny, as well as all the other Fed governors, did exactly as they were supposed to do.



"I killed the Bank."

   --   Andrew Jackson


Sun, 08/21/2011 - 23:24 | 1584921 Caviar Emptor
Caviar Emptor's picture

WE all knew this was going on. Here on ZH we suspected and discussed it abundantly. Nobody with a brain believes rabbits could be pulled out of a hat. Now here's the less well-known secret bailout: Trillions were doled out to corporate America to allow them to roll debt, cover payrolls and operating expenses. It took a long time for things to unfreeze, but they kept "stimulating" private corporations with welfare long after so that they could issue more debt and more stock. That's the source of all that "cash on the balance sheet" that won't get invested (no fools, they). And the irony of it all? Coroporate America is as leveraged now as before the crisis in 2008. Smart, I tell ya, Smart!!

Mon, 08/22/2011 - 09:29 | 1585586 Bob
Bob's picture

Must be that "invisible hand" we hear so much about.  Now if only government will get out of the way (now that it can supply no more free money) and let the job creatin' commence!

Mon, 08/22/2011 - 10:15 | 1585772 Kayman
Kayman's picture

Caviar Emptor

Agreed. TD and ZH have discussed this Fed criminality from the beginning.  It is the only reason the Fed fought so hard to keep it from going public; finally trying to bury it under 29,000 pages. 

The Fed exists under U.S. law to protect the wealth of U.S. and Foreign banksters. Period.


Sun, 08/21/2011 - 23:25 | 1584924 monopoly
monopoly's picture

I am glad Tyler thought this article was important enough to post. When I read it I had to let you guys know also. Zero Hedge does not miss much. Gold up 19 dollars and futures flat. Might be an interesting day.


Good Night, see ya manana.

Mon, 08/22/2011 - 01:33 | 1584967 baby_BLYTHE
baby_BLYTHE's picture

Gold is now the world's defacto reserve currency. The behavior of Gold/Equities, is behaving in the complete opposite fashion of 2008. The next crisis is the dollar reserve currency crisis, as predicted by Ron Paul, The Mises Institute and Zero Hedge for years.

Every American must prepare for an immediate hit to their standard of living of somewhere between 30-50%. Nothing can stop what is coming. Some will be better prepared than others. 

Mon, 08/22/2011 - 06:36 | 1585270 disabledvet
disabledvet's picture

Cool. Who gets it first? (In your view of course.)

Mon, 08/22/2011 - 08:48 | 1585481 Bicycle Repairman
Bicycle Repairman's picture

Anyone over-invested in real estate has already "gotten it".  Anyone over-invested in stocks will "get it" by year's end.

Sun, 08/21/2011 - 23:26 | 1584926 Sock Puppet
Sock Puppet's picture

As a reminder, "denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools." 

Visualize this, 12 bills "denominated in $100 billion dollar bills, fits nicely in my wallet."

Sun, 08/21/2011 - 23:49 | 1584949 DeadFred
DeadFred's picture

Or with the 100 trillion note like Zimbabwe's you get change back. Don't you just hate these sensationalized statistics? I mean with $100 bills you can't even fill a measly six Olympic-sized swimming pools which seems WAY less don't you think???

Now with Sarc/off the number do get fuzzy. BAC received 91 billion in loans but a potential 20 billion legal hit is making them insolvent? I know that it's different columns involved and the columns are all important but if you add in all the fabricated valuations and slights-of-hand it take s a magician like Tyler to sniff out the truth.

Sun, 08/21/2011 - 23:27 | 1584931 Lazlo Toth
Lazlo Toth's picture

One word: Accountablility.

Sun, 08/21/2011 - 23:30 | 1584932 dumpster
dumpster's picture

1.2 trillion for the banks .  Just an honest days work. 

kept the lights and computors  working ,  and those ATMs stuffed with cash.  

why did some of the great bank heist happen.   as the gangsters would say.. thats where all the money is .

Sun, 08/21/2011 - 23:30 | 1584934 meatball
meatball's picture

This should be all over the news right now but it isn't.

Who needs congress anymore? Not that they wouldn't have approved this. But the Fed would just give money to the banks on its own anyway with no oversight?

Disgusting and expected.

Sun, 08/21/2011 - 23:30 | 1584935 carbonmutant
carbonmutant's picture

Our community organizer is working on Plan B... scary...

Sun, 08/21/2011 - 23:49 | 1584973 SilverIsKing
SilverIsKing's picture

It's going to look a lot like Plan A

Sun, 08/21/2011 - 23:30 | 1584938 PicassoInActions
PicassoInActions's picture

Some1 explain to me please, what happenes to the money of those failed banks, Like Lehman, Bern, Countrywide and so on...

I see them on the chart they borrow billings, did they return it? As i understood per bloomberg article the colatteral was a junk rated. After they fall did they pay back?

Sun, 08/21/2011 - 23:38 | 1584951 Sock Puppet
Sock Puppet's picture

The money was created out of thin air.  When the institution dies the money goes to money heaven.  It is called a shrinking money supply or aka deflation.

Sun, 08/21/2011 - 23:32 | 1584940 Perpetual Burn
Perpetual Burn's picture

Free money! haters gona hate!

Sun, 08/21/2011 - 23:33 | 1584941 Sambo
Sambo's picture

The only thing more valuable than gold is your mind. Protect it with all you've got...dont let it slip into greed & fear.

If Wall St & European bankers and politicians learn this important lesson, they'll have some peace of mind on their death beds.

Sun, 08/21/2011 - 23:39 | 1584952 dumpster
dumpster's picture

some where i read that the fed injected enough cash into the system  .. trillions 25 trillions .  that each family in  america could have recieved 250,000 .. enough to pay off the homes , credit cards .. and kept the cash flowing through the banks..

a land flowing with milk and honey,, the next 25 trillion will be injected into familys .. obama will rise to the  new reality,  a bank account in every garage . a windfall for the american dream.  

social security a 25%  increase just like nixon.. the votes will be bought on the backs of the next generation .



Mon, 08/22/2011 - 00:02 | 1584959 Sock Puppet
Sock Puppet's picture

I don't know if it was actually 25 trillion in cash but it was enough to offset the destroyed dollars that were no longer in the money supply or in the shadow banking system.  The reason the fed injected the money was to prevent a deflationary death spiral and they will do it again.

Sun, 08/21/2011 - 23:43 | 1584962 Mister Minsk
Mister Minsk's picture

I guess all those skanks wanted some funny money.

Sun, 08/21/2011 - 23:46 | 1584968 plocequ1
plocequ1's picture

Well then, I guess its not a secret anymore. National enquirer Bitchezzzzzzzzzzzzzz

Sun, 08/21/2011 - 23:48 | 1584970 buzzsaw99
buzzsaw99's picture

Damn it's good to be a banksta!

Sun, 08/21/2011 - 23:52 | 1584980 TruthInSunshine
TruthInSunshine's picture



I pledge allegiance to the 400 Families of the NWO & the United States of America, and to the Kleptocracy for which they stand, one world banking Cabal that can create fiat from thin air, imposing debt slavery and injustice upon all.


The Bernank, The Jeetner & the ObaMao make this pledge first thing in the morning and last thing before bed, each and every day.

Mon, 08/22/2011 - 00:25 | 1585030 IBelieveInMagic
IBelieveInMagic's picture

Hope this line of thinking helps you disassociate yourself from the shenenigans of the past 40 years.

Sun, 08/21/2011 - 23:57 | 1584987 Mine Is Bigger
Mine Is Bigger's picture

So, does this mean no QE3?

Mon, 08/22/2011 - 03:19 | 1585139 Incubus
Incubus's picture

"Come on man, just one more time and I'll be able get my shit together.  I just need this one last time...come on, please..."

Sun, 08/21/2011 - 23:58 | 1584989 mfoste1
mfoste1's picture

hmmmm rothschild isnt on there.....

Mon, 08/22/2011 - 02:38 | 1585128 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

No Barclays on the list?  The Rotheschildes may be fighting a losing battle, betting the farm on carbon credits and all.  Their time may be up; it was a good run for a bunch of inbreds.

Mon, 08/22/2011 - 00:04 | 1584999 BlackholeDivestment
BlackholeDivestment's picture

...a ''lie''! 

A LIE!               

...really, a lie? Man, that is pure evil. Trillion freaking fiat Chairsatan EEeeevil.

     what are you going to do about it?

Mon, 08/22/2011 - 00:05 | 1585003 FlyPaper
FlyPaper's picture

So what I'd like to know is how, under GAAP, a bank would keep this a secret on their quarterly report?  E.g., wouldn't the receiving entity have to show a major CASH infusion (Assets +) and a liability for the loan?

And if they didn't report it, was it because it was between quarters (certainly not in every case) or was there false reporting with the SEC's blessing in order to keep banking confidence?

How about $ doled out via the IMF from the US during this period?

And how did this reflect on the Fed's balance sheet?


Mon, 08/22/2011 - 00:05 | 1585004 The Grifter
The Grifter's picture

Now that's a real piece of investigative financial journalism if I ever saw one.   Gives me some hope about journalism in general.

I think back to 2008 and all the angst caused by Bear Stearns, Lehman, and the political theatre of the TARP bailout.   In hindsight it was nothing compared to this.  The Bernank was pulling levers behind the curtain with zero oversight, a true financial puppet master "saving the world".

QE1, QE2, QE3? who cares, it's nothing.  It's the stuff going on now with no transparency at all you don't know about, and won't find out about it for 3 years, that will bring the system down.

Time to end the Fed.  Before they end us.


Mon, 08/22/2011 - 00:45 | 1585051 jomama
jomama's picture

the fed's just a front orginization, anyway.

Mon, 08/22/2011 - 00:09 | 1585005 chindit13
chindit13's picture

"the $1.2 trillion would fill 539 Olympic-size swimming pools"

EDIT: the $1.2 trillion {bought} 539 Olympic-size swimming pools {in the Hamptons}

I write this because I saw some shortish, bearded and balding guy sunning himself next to Lloyd's Lake Sunday afternoon.  The pool boy tells me the man was drinking heavily (Wild Turkey and Karl Strauss, who would have known?) and Mrs. Blankfein was miffed because baldy (the bearded one, not the Jared Lee Loughner look-alike) was ignoring her puerile advances.  "Doesn't he know who I AM?", she was shouting, while the man kept blathering, "I don't like mootchski's, bitch" (Google Yiddish translation:  those fat blobs at the bottom of the buttocks that get squished into the public domain by a too-tight bathing suit).  Apparently the entire scene was particularly disconcerting, and there was talk that many of the staff were going to pull their applications for Green Cards and just go home.  The Law of Unintended Consequences, indeed.

Mon, 08/22/2011 - 00:08 | 1585007 Destinapp
Destinapp's picture

Ben Dandy Bernanke is leaking his next move, via the WSJ, that he will buy foreign bonds to "help" Europe.

"according to people familiar with the matter."

"said the people familiar with the matter say"

"said a senior executive at a major European bank who has participated in the talks"

"a senior bank executive said"

From the article:

"Until recently, that hasn't been a problem. Thanks partly to the Federal Reserve's so-called quantitative-easing program, huge amounts of dollars have been sloshing around the financial system, and much of it has landed at international banks, according to weekly Fed reports on bank balance sheets.

This spring, foreign banks were able to build up ample cash cushions, thanks largely to quantitative easing

The latest Fed data "could be telltale signs that foreign banks are in need of dollars again"

So the foreign banks just "park" those worthless Italian and Greek bonds with the Fed, and Ben loans them money at face value.

It doesn't need congressional approval since Ben doesn't mark to market.

The stock market will rally and treasuries and gold will fall due to the fear premium diminishing.

But the Dollar will also fall causing food and gas prices to SOAR.

Too bad that it only helps the top 10% since they own 80% of stocks and spend on average 2% of their income on food and energy.

We the bottom 90%, will see our food and energy cost as a percentage of income go from 15% to 25%

I think Bernanke will have to wait for Europe to implode and the stock markets to go down further before we the sheeple allow him to buy Italian bonds "to save the economy" just like we allowed the first bailout.

Mon, 08/22/2011 - 06:42 | 1585272 disabledvet
disabledvet's picture

Sounds more like a bunch of folks in ny hinting that the fed better bail out their euro bets or else.

Mon, 08/22/2011 - 00:11 | 1585012 Rhetoric
Rhetoric's picture

Ben Bernanke & Timothy Geithner - 2 reasons republicans are wrong about planned parenthood / abortion.

Mon, 08/22/2011 - 01:07 | 1585064 Dasa Slooofoot
Dasa Slooofoot's picture

As if multi-culti or abortion applies to it's primary promoters --  Jewry. 

Mon, 08/22/2011 - 01:20 | 1585016 Sock Puppet
Sock Puppet's picture

"as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. "

Remember the Banks would not have needed all this money if Americans would have just paid their bills.  So whose fault is it anyway?

Mon, 08/22/2011 - 00:15 | 1585017 besnook
besnook's picture

and some people wonder if they are going to print their way out of this mess. of course they are. if you were smart you would start rioting. that should be enough for the fed and .gov to send every usa occupant at least 5000 dollars and maybe more if you act really scary.

Mon, 08/22/2011 - 00:19 | 1585023 Segestan
Segestan's picture

Hey bankers..... see what happens when you think you can build a Great Socialist/Society? Without ever using logic! Now what genius'?

Mon, 08/22/2011 - 00:46 | 1585052 oldmanagain
oldmanagain's picture

Not socialism.  Just another Austrian "animal spirits" feast by the "job creators".

Mon, 08/22/2011 - 00:24 | 1585029 digalert
digalert's picture

Hey Barama!

Let's talk about that brink you saved us from...

Mon, 08/22/2011 - 00:33 | 1585040 DeadFred
DeadFred's picture

His answer? This is a completely different brink. This is a Tea Party Terrorist brink. Don't hold your breath while you're waiting for a narcissist to admit a mistake.

Mon, 08/22/2011 - 00:31 | 1585037 BlackholeDivestment
BlackholeDivestment's picture point two trillion, secret. That's a lot of labor yet to work. lol

Mon, 08/22/2011 - 00:32 | 1585039 PaperBugsBurn
PaperBugsBurn's picture



Suckers... and just you wait for what comes next....  lmao


but nooooo, Chavez is a dictator, you are the good guys, "our" empire is not evil... we are not evil...




zombie land here you come!!



Mon, 08/22/2011 - 02:22 | 1585120 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Angry Preacher,

We know, we know.  Calm down and sip on some Maker's Mark.  You do like Maker's Mark, don't you?

Mon, 08/22/2011 - 00:42 | 1585048 Milton Waddams
Milton Waddams's picture

From the bloomberg article:


The $1.2 trillion peak on Dec. 5, 2008 -- the combined outstanding balance under the seven programs tallied by Bloomberg -- was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.


From some conspiracy minded, tin-foil hat Congress person in 1932:

These evil-doers have robbed this country of more than enough money to pay the national debt. What the National Government has permitted the Federal Reserve Board to steal from the people should now be restored to the people. The people have a valid claim against the Federal Reserve Board and the Federal Reserve banks. If that claim is enforced, Americans will not need to stand in the breadlines or to suffer and die of starvation in the streets. Homes will be saved, families will be kept together, and American children will not be dispersed and abandoned. The Federal Reserve Board and the Federal Reserve banks owe the United States Government an immense sum of money. We ought to find out the exact amount of the people's claim. We should know the amount of the indebtedness of the Federal Reserve Board and the Federal Reserve banks to the people and we should investigate this treacherous and disloyal conduct of the Federal Reserve Board and the Federal Reserve banks.

Mon, 08/22/2011 - 11:49 | 1585090 Sock Puppet
Sock Puppet's picture

The problem with that argument today is that the dollar is not gold backed.  Look at the recent Eric Sprott article, the greatest trade ever.  The US has traded 8 trillion green bits of paper for real stuff over the last 40 years since we went off of the gold standard.

Think of it like this the rising tide of all fiat bits of paper raised all boats, just as they have in China.  China and the US as well as the rest of the fiat world have all had increased standards of living operating on this fiat system.

The fiat system is just some rules made up by men, Bretton Woods 2.  Rules always can and will be changed to benefit those in power.

What we need and it is the only solution to the current crisis is writing off the bad debt.  One of the key ways to do this is through large scale debt forgiveness.  The sooner everyone has reduced debt loads, including governments, corporations, banks and individuals we can and will recover.  The problem is politics and who will bear the losses right now. But we should just legislate accross the board haircuts, say every person and entity gets an immediate 50% in debt reduction including the governments.  So what if some bond holders lose and China loses, but realitively all things being equall they aren't out much and we can all get back to the game of making profits and hopefully better decisions.  I think the Chinese would be willing to write down the dollar reserves by 50% if it meant Americans started buying Chinese goods again hand over fist.  China loses reserves but keeps its masses working, which lessens the chances for revolt.

Essentially what I am saying is we need an orderly reset of all of this unsustaninable debt and the world governements need to get together to acomplish all of this.  Think of it as world financial mulligan(TR).

Mon, 08/22/2011 - 00:43 | 1585049 zombiebank
zombiebank's picture

With all of this info why aren't senators in jail? Aren't they the ones who approved TARP and "secret tarp" in the first place? Why is BB giving my money to bankstas in Europe? Just imagine if we had invested those trillions into some worthwhile projects - like an energy policy, repairing infrastructure, etc.

Mon, 08/22/2011 - 01:00 | 1585061 cranky-old-geezer
cranky-old-geezer's picture

In Weimar Germany life went on as the mark collapsed.  Nobody revolted because it wouldn't do any good.  Just figure out how to trade currency for goods fast as possible before it loses more value. 

Inflation was 1000% per week late in the crisis.  Life went on.  Nobody revolted.  Because it woudn't do any good.  People just dealt with it. 

That's how it will be here in America when the US dollar loses WRC status.  Inflation will be calculated by the week, not the year.  And life will go on.  Nobody will revolt.  People will just deal with it best they can.

Mon, 08/22/2011 - 00:59 | 1585062 oldmanagain
oldmanagain's picture

This is what a the Koch world is all about.  No regs, cheap money, and bailouts for the chosen.

Mon, 08/22/2011 - 01:10 | 1585069 Dasa Slooofoot
Dasa Slooofoot's picture

Your post is a gently dusting of down syndrome on my eyes. 


Congrats on your PuffHost brainwashing...after-all this "Koch World" has been in power for the last 20 years....or is it a minority within a minority for 7 months, i can't quite comprehend which?  Don't you agree, idiot?  

Mon, 08/22/2011 - 01:23 | 1585079 Growyourownfood
Growyourownfood's picture

And for all those keeping track at home: the combined borrowings of the supposedly insolvent and implosion-ready Canadian banking system: under $25B counting all peak borrowings together. What could the average borrowing have been? A few Billion? Thanks.

Mon, 08/22/2011 - 01:38 | 1585089 jimmyjames
jimmyjames's picture

As of 2009, the CMHC had securitized $300 billion worth of mortgages. So critical is this function that Ottawa relied on the agency to prop up the country’s big banks during the financial crisis, giving the CMHC permission to buy $66 billion worth of mortgages.

Mon, 08/22/2011 - 01:42 | 1585095 oobrien
oobrien's picture

Here's Jim Rogers calling Ben Bernanke a boob:

It's good stuff.


Mon, 08/22/2011 - 08:20 | 1585400 slewie the pi-rat
slewie the pi-rat's picture


Mon, 08/22/2011 - 01:47 | 1585096 Mec-sick-o
Mec-sick-o's picture

McDonalds Corp?


Mon, 08/22/2011 - 02:09 | 1585112 molecool
molecool's picture

"Mark Lake, a spokesman for New York-based Morgan Stanley, said the crisis caused the industry to “fundamentally re- evaluate” the way it manages its cash.

“We have taken the lessons we learned from that period and applied them to our liquidity-management program to protect both our franchise and our clients going forward,” Lake said. He declined to say what changes the bank had made."

Yeah, but when it invariably blows up in their faces again they come to us hat in hand for another round of bailouts. Why do those fuckers continue to get to make the rules of the game? Despite the fact they have abused public trust on every single occasion? Bloody vampires who are sucking our society dry. 

Boiled rope will be a valued commodity sooner than those fucks think. Maybe they can create a derivative around that and make a killing (literally).

Mon, 08/22/2011 - 02:17 | 1585117 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Perry should have said, 'The Federal Reserve is a treasonist enterprise', not the whole printing thing.  They don't print monie, either.  They print currencie.  It makes for a good double standard, the Fed printing 'Monie' and all.

Mon, 08/22/2011 - 02:27 | 1585121 baby_BLYTHE
baby_BLYTHE's picture

but it all spends the same way, no?

Currency=Credit=Cash=Reserves=Debt. It all involves similar counterparty risk. Only been studying this stuff for around two years... Welcome the education :)

Mon, 08/22/2011 - 03:56 | 1585168 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

but it all spends the same way

On an island economy, you could trade goods for barter and trade, or you could use a means of exachange- puka shells have had their place in history.  Once off the island certain items have premium:  precious metals are that asset.

Despite what the Federal Reserve wants, they can not print monie- monie only comes from stars.  This finite thing, gold, lasts forever, and stores its wealth.  It is fungible, and can trade for items specifically.

Trade is a matter of opinion, for what one wants at any specific time can vary, and since we are only human, a wanted good can be anything, for we know are limitations.  A poet, for example, may be able to create, or rather, grasp, ideas and serve them for a priceless penny.  Goods and services may be attained out of thin air in this instance, but for other forms of trade, a means of exchange is needed.

The ultimate means of exchange is that that stores wealth, and try as he might, the alchemist Bernanke will never create something out of nothing.

Mon, 08/22/2011 - 02:32 | 1585124 jonny47264
Mon, 08/22/2011 - 02:47 | 1585131 MsCreant
MsCreant's picture

Gold $1894

Mon, 08/22/2011 - 03:07 | 1585133 The Shootist
The Shootist's picture

$1,900 by morning. Come on, Europa!

Mon, 08/22/2011 - 03:22 | 1585140 Incubus
Incubus's picture

What about Europa?  There's seas of fiat underneath that surface of ice?

Mon, 08/22/2011 - 03:36 | 1585143 TzaristBondHolder
TzaristBondHolder's picture

Can you imagine carrying gold dust in a bag to pay for groceries?

Mon, 08/22/2011 - 03:57 | 1585171 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I can imagine giving my butcher a silver coin for a summers worth of meats.

Mon, 08/22/2011 - 03:42 | 1585158 Randyrocker
Randyrocker's picture

This premeditated crime of misuse and theft of public monies held in trust by the FED and Wall Street conspirators deserves indictments and charges to be laid as well as a full public accounting and disclosure of all nefarious activities that took place.

The main problem being that the US government Congress and White House and administration officials along with the DOJ and many other alphebet departments were in on the heist and theft of the public's money and trust. One could also believe that based on no indictments as of yet being rendered, that the President of the United States was also a party to this thievery and looting of the people's money. The only way that any charges and or reperations can take place is by the public demanding by massive revolt actions against, being taken. All hell has broken loose, and all justice is being denied. The end of the FED is now!

Mon, 08/22/2011 - 05:05 | 1585217 RichardP
RichardP's picture

This premeditated crime of misuse and theft of public monies ...

Do you refer to the monies lent by the Fed as documented by the Bloomberg article?  You do know that the article said most/all of these lent monies have been paid back, right??  I don't suppose that makes any difference, tho - right??

... the central bank netted $13 billion in interest and fee income from the programs from August 2007 through December 2009. ... “Nearly all of our emergency-lending programs have been closed. We have incurred no losses and expect no losses.”


Mon, 08/22/2011 - 13:17 | 1586544 rambo1028
rambo1028's picture

If you buy that....I have an investment opportunity I'd like to offer you....

Mon, 08/22/2011 - 04:20 | 1585191 doomandbloom
doomandbloom's picture

Could someone send this to Roubini pls? He was doing my frickin head in yest with his 'I heart Fed' comments on Twitter...

Mon, 08/22/2011 - 04:29 | 1585196 doomandbloom
doomandbloom's picture

as a reminder, the $1 trillion in bits and bytes would fit a small ipod shuffle...

Mon, 08/22/2011 - 04:48 | 1585204 falak pema
falak pema's picture

This is the global Oligarchy in all its ephemeral splendour!

And it continued with QE-2 and it'll continue with ECB/FED play in coming months. No way that there will be a liquidity crunch.

At least 1929 taught Ben that lesson. Print away land of fiat dreams.

Mon, 08/22/2011 - 04:59 | 1585212 gwar5
gwar5's picture

Amazing. So that's what a 21st century tulip mania in the USD loooks like.  Glad they waited until Biden got back from China before publishing that, they might have pulled out his plugs.


Greenspan was right, we can always print money. But, you can't be the worlds reserve currency and do that, sorry. Never mind the criminal implications. Big confiscations through devaluation of the USD will not be avoided.  Time for a gold standard. This is the sort of thing that will make it easier to nationalize and bust up the big banks.

Haircut, bitchez.





Mon, 08/22/2011 - 05:08 | 1585220 jonny47264
jonny47264's picture

Silver $44!!

Mon, 08/22/2011 - 05:42 | 1585240 oobrien
oobrien's picture

Before the markets open, let's sing the Ben Bernanke Song:

God bless, brothers and sisters.

It WILL get better.

But what the fuck do I know?

Mon, 08/22/2011 - 08:23 | 1585405 slewie the pi-rat
slewie the pi-rat's picture


Mon, 08/22/2011 - 05:46 | 1585242 CheapPanderingCrony
CheapPanderingCrony's picture

I wonder what impact that has on the Fed's ability to launch QE3, Operation Twist, or whatever other program.

Think about it, if they've already spent 1.2 Trillion more than they've previously admitted to, that's gotta have a big impact in the defeciet, budget and ability to provide more liquidity.

Mon, 08/22/2011 - 06:21 | 1585263 EZYJET PILOT
EZYJET PILOT's picture

I'm a bit confused, how does this relate to the recent GAO audit? This corruption sickens me!

Mon, 08/22/2011 - 06:47 | 1585276 underpants
underpants's picture

That's alot of companies and hence, alot of employee's who would know about this.  Are there really none of them pissed off enough about sucking up the taxpayers money to speak up about this- even anonymously? Are there no subversives left?  Jeezuz.

Mon, 08/22/2011 - 06:57 | 1585282 gianakt
gianakt's picture

Hearing that Fed will openly allow for the US Dollar to devalue as long as it gets the economy growing and re-target inflation at 4 %. When a depression is staring you in face shock and awe measures need to take place. The real solution out of the Great Depression was that prices were inflated 1000% from 1935 to 1955.

Mon, 08/22/2011 - 06:57 | 1585283 gianakt
gianakt's picture

Hearing that Fed will openly allow for the US Dollar to devalue as long as it gets the economy growing and re-target inflation at 4 %. When a depression is staring you in face shock and awe measures need to take place. The real solution out of the Great Depression was that prices were inflated 1000% from 1935 to 1955.

Mon, 08/22/2011 - 07:02 | 1585291 sudzee
sudzee's picture

Slowly the fraud comes out. Just how much money was printed. Was it 1.4trillion or 104trillion. I'm sure the public will never find out. Physical dollars with serial numbers, so everyone can keep tabs, and untracible digital dollars printed bby the trillion. Kind of like money laundering at its best. Bernake's idea is that he can hide hyperinlation by not printing physical dollars that the masses can actually track or use.

Only 300biliom physical dollars are available for the masses, but digital dollars printed by the trillion for "friends".

Mon, 08/22/2011 - 07:05 | 1585296 j0nx
j0nx's picture

As long as the people allow it then it will continue. For now the people are more interested in gay marriage and Jersey Shore. For now.

Mon, 08/22/2011 - 07:08 | 1585300 wombats
wombats's picture

It is surely outrageous, but hardly shocking at all.

This activity is the FED's first purpose, namely to protect the largest banks.

Read "The Creature from Jekyll Island" and it all makes perfect (and perverted) sense.


Mon, 08/22/2011 - 07:16 | 1585307 deflator
deflator's picture

 The FED actually believes that it can "target" infllation at 4%. It wishes it could, "control" inflation by raising asset prices while keeping consumer prices subdued.

 Those consumer prices are things that a growing % of 7 billion people use on a daily basis such as food and energy.  This is not 1935 to 1955 where American consumption of food and energy still had room to extrapolate growth globally on the supply side. Now that China and the rest of Asia has been included in the economic model for the latest short sighted extrapolation, there is no place left to extrapolate. A little American consumption spread out over several billion people can easily eclipse global production.

Mon, 08/22/2011 - 07:21 | 1585312 sudzee
sudzee's picture

Biggest problem is that the FED is doing the "digital dollar dance" right now. Who are they printing for today. Will we find out 2 years from now that the FED printed 5trillion on this very day. I'll keep track of this date for a year or 2 to find out who won today's lottery.

Mon, 08/22/2011 - 07:22 | 1585315 Byte Me
Byte Me's picture

Nice to see that the Arab Banking Corp was sucking on Benny boy's tittie. I guess their Islamic principles had no problem borrowing money since it was "free". Or does the Fudd have special lending mechanisms involving aluminium ingots for such instances?

Any chance of one of the Durdens digging up dirt on such possibility? Could be a rich vein of systemic hypocricy there..


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