Ted Rall (RallBlog) | RS_News
December 1 2011
OPINION | Forget Herman Cain’s 9-9-9. The battle cry for every American ought to be 7-7-7.
7-7-7: for the $7.7 trillion the Bush and Obama Administrations secretly funneled to the banksters.
Remember the $700 billion bailout that prompted rage from right to left? Which inspired millions to join the Tea Party and the Occupy movements? Turns out that that was a mere drop in the bucket, less than a tenth of what the Federal Reserve Bank doled out to the big banks.
Bloomberg Markets Magazine reports a shocking story that emerged from tens of thousands of documents released under the Freedom of Information Act: by March 2009, the Fed shelled out $7.77 trillion “to rescuing the financial system, more than half the value of everything produced in the U.S. that year.”
The U.S. national debt is currently a record $14 trillion.
We knew that the Fed and the White House were pawns of Wall Street. What’s new is the scale of the conspiracy.
Even the most jaded financial reporters were stunned at the extent of collusion: “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 emergency loans 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.”
Citigroup earned an extra $1.8 billion by reinvesting the Fed’s below-market loans. Bank of America made $1.5 billion.
Bear in mind, that’s only through March 2009.
“Many Americans are struggling to understand why banks deserve such preferential treatment while millions of homeowners are being denied assistance and are at increasing risk of foreclosure,” wrote Representative Elijah Cummings, a ranking member of the House Committee on Oversight and Government Reform who is demanding an investigation.
Indeed we are.
This stinks. It’s terrible economics. And it’s unbelievably cruel.
Continue reading →