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Bloomberg News reporter Bob Ivry discusses this week's reporting - based on a batch of recently acquired documents - on the bank bailout: from the real size to the secret negotiations.
The most shocking facet of of this story is that the Fed decided that the banks' reputation (and survival) was more important the public's right to know the truth.
In effect, they knowingly interfered with our governance by withholding this information from Congress as it debated "too big to fail".
BTW, When would this information have come to light if the suit hadn't forced them to disclose it?
Thanks for bringing this very important story to our attention!!
Hi, The borrowers should have definitely been bailed out first and last. I was one pof them and I am still suffering the consequences of foreclosure and predatory lending. Eugenia Renskoff
I'd like to know what the value is of any citizen's vote if the Fed can bypass congressional oversight in this manner.
Ermmm, I'm just a newbie US pleb, and I may have misunderstood the whole citizenship test thing, but didn't you guys have a Revolution to get rid of the power of the princes, (that whole "no taxation without representation" thing) not to just create new classes of aristotechnocrats who'd line their own pockets and prop up their Old World blue-blood soul-mates?? I'm beginning to wonder if their wasn't always a Union Jack stitched on the back of Old Glory, because Wall St. and the City of London seem yet again to be the only ones fiddling during an Inferno. Hogarth would be a busy man today.
Tim "Secret Negotiations" Geithner.
7.7 trillion... TRILLION!!!!
May I kindly remind everyone that Obama hired Tim Geithner??
Is it any wonder where all the money went??
Maynard Keynes likened the economy to a sponge that is able to absorb money. The absorbancy of that sponge is aggregate demand. As long as people want to buy things, there will not be inflation, despite the increase in the money supply. Presumably, this is due to the fact that companies will continue to produce and supply as long as business is profitable, keeping prices stable. However, when demand runs low, and people are reluctant to spend their cash (maybe because they lost their jobs or because of economic uncertainty), the cash builds up as banks refuse to lend or the public refuses to borrow/invest. At this point, absorbency in the sponge is very low. If it encounters even a touch more water, it will become super-saturated and inflation will ensue as the economy fails to hold more water. The way to fend off inflation is to put people back to work so as to stimulate their appetites for risk-taking, investing and spending. This will in-turn create more jobs and more demand, increasing the absorbency of the sponge.
Money, money... where did all the money go???
Yeah, they got that lobbying money from the government.
The scale of the problem at it's peak is stunning but having the head of the Treasury disclose information to a select group of ex-Goldman Sach's hedge fund managers so that they could profit is shocking. I wish the guest would talk about this.
Could the Fed have put conditions on all this free money?If so, then why didn't they??
And again I will be the one to remind everybody that President Bill Clinton at the behest of Sen. Phil Graham of Tx and VP on the board of UBS, eliminated the Glass-Steagall Act.
Why is the bailout a crime?
1. By lowering rates to near zero it trnasfeered $300 Billion a year from mostly elderly savers to the bankers.
2. By buying the toxic securities at 100 cents on the dollar instead of the 50 cents they were worth, it traansferred 2 trillion in losses to the taxpayer for all eternity and the bankers got bonuses and no haircut.
The 200 billion money laundering though AIG paid for thier bonuese that year.
@Robert my head explodes daily lately
One might have a question to ask if the lump in one's throat from all this news would go away! Is anyone else's head exploding?
Doing things together with the Canadian,Japanese etc Central Banks sounds cozy, but how much do we give and how much do they give?
Gee, how do CITIZENS get in on this boondoggle?
What ever happened to the free market? I guess we have it until we don't.
Brian, the Fed does nothing to help the economy. When they create money out of nothing we get price inflation...
There were those that talked about the 7.7 trillion back in 2008...
What Really Happened? the rich got richergod bless america!
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