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Thread: Secret Fed Loans gave banks 13 billion

  1. #31
    Skeptical Optimist
    Rhapsody1447's Avatar
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    Aug 2006
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    01-10-16 @ 02:13 AM
    Very Conservative

    Re: Secret Fed Loans gave banks 13 billion

    Quote Originally Posted by j-mac View Post
    It really is both ever since we started printing the money to buy our own debt like Weimar.

    Deficit spending is hardly securities fraud. We've been doing it since the start of the 20th century. The problem is the size and sustainability of our deficits.

    "The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit: in an economic slump, government should run deficits, to compensate for the shortfall in aggregate demand, but should run corresponding surpluses in boom times so that there is no net deficit over an economic cycle – a cyclical deficit only. "
    "There is an excellent correlation between giving society what it wants and making money, and almost no correlation between the desire to make money and how much money one makes." ~Dalio

  2. #32
    Join Date
    Jun 2011
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    03-16-12 @ 09:02 PM

    Re: Secret Fed Loans gave banks 13 billion

    Quote Originally Posted by Rhapsody1447 View Post
    Corzine is a scumbag and a criminal. Chances are much higher now that he will see day in court after they put ex-FBI Director Louis Freeh on the case.
    I hope you are right.

    I still fail to see the connection you draw between blatant securities fraud and the existence of a central bank. People seem to blur the lines between bailouts from the federal budget and "bailouts" from the Fed's printing presses. The former comes directly from taxpayer's pocket and the latter steals from the value of the dollar itself. They also fail to differentiate between expansion of the Fed's balance sheet with loans from the Term Auction Facility. The former is an expansion in the money supply itself while the latter contracts itself when the loans are repaid.
    It's confusing with so many opinions but I'm not argueing that what the Fed is doing is the exactly the same as securities fraud. I believe the Fed is indeed stealing as much as one would in a securities fraud case but in the Feds case, it's legal and even highly encouraged.

    You have any source for this? I googled around briefly and couldn't find any credible source showing the Fed dropped interest rates below zero.
    No, they gave the banks the money for nothing, had them keep the money in a federal account (while it wasn't being used) and paid interest on that account.

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