Bernie Sanders: First top to bottom Federal Reserve Audit

[Windpower]

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."

more here

://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

[Native_NM]

I wonder how many millions of people work for the corporations that were allegedly saved by the Fed?

[rwanders]

Having congress approve such loans sounds like may be good idea but, how large a loan would require approval?  May be good but, Congress would quickly turn process into political chinese fire drill complete with weeks or months of posturing and be unable to ever make decision. It is hard for me to believe that a 535 person loan committee is a practical setup to manage financial crisis. Having said that, the fed does need a better level of oversight. Too bad congress has proven for so long to be unable to oversee anything effectively. Don't know the answer but, congress is as broken as the fed. Bunch of posturing, impotent clowns who don't know what they don't know and are very slow learners. Highly technical problems are simply beyond their ability. Our President has amply demonstrated his own inability or unwillingness to lead and has now retreated into his comfort zone----campaign speeches full of platitudes and grand pronouncements and promises---sprinkled with excuses and his ace-in-the-hole-----blame Bush for everything. I think Barack is in way over his head and is proving it more each day. I really like the way he tries to thrust his little jaw out when trying to pose as the tough leader---go look up old photos of Mussolini----same posture but, at least Mussolini could make the trains run on time and he didn't need a teleprompter to keep his BS straight.

Fortunately or, unfortunately we don't seem to have any knights on horseback to save us these days. We're just going to have to muddle through somehow as usual. We muddle good----have lots of practice and plenty of muddlers in office to lead us from mud hole to mud hole.

p.s.; No, i am not trying to claim Obama is a fascist or a dictator, but he does seem to be as feckless and ultimately ineffective as the late Italian "savior" was. Grandiose campaign speeches though? He's our man!

[Native_NM]

The PDF file was 266 pages.  I started to browse it last night but decided a root canal would be more exciting.  The problem with all these independent reports is that they are performed by the same group of career government employees at the GAO. 

Some people like Big Orange for tools and some like Big Blue.  At the end of the day, you still go home with the same tools or the same 2x4.   Politics is the same way: Big Red or Big Blue. Same outcome regardless of which one you choose.

[Windpower]

Politics is the same way: Big Red or Big Blue. Same outcome regardless of which one you choose.




Absolute truth

[Native_NM]

I was always a Baldridge guy. They ran them off and I tried True Value. They're gone also.  Doesn't leave the independent-minded with too many choices...

[rwanders]

I was always a Baldridge guy. They ran them off and I tried True Value. They're gone also.  Doesn't leave the independent-minded with too many choices...

Once you get away from Anchorage area we still have a few of the old style hardware stores. Ones in old ramshackle buildings with multiple added rooms sticking out and owners who actually work there every day. Guys and women who can lead you to a part or piece that you can only vaguely describe, tell you how it works and point out related parts you hadn't even considered but, would have meant another trip. You know the type----the ones who ask "Can I help you?" and, they actually can. Their store is cluttered with esoteric stuff but, they know what it is, how to use it and they are always able to suggest alternative methods and materials when they don't have the thig-a-majig you were describing.

Another generation and they will all be gone---a sad day indeed.

[dug]

Maybe I'm missing something but there seems to be a contradiction here. The same folks who lament small mom & pop's going under are in favor of, or at least neutral in respect to large corporations receiving favorable treatment and tax supported bailouts.

I wonder how many millions of people work for the corporations that were allegedly saved by the Fed?

Several thousand small businesses could employ millions and be healthier for all.

When I ran my business I held to this wacky notion that all invoices and payroll must be paid in full before I could receive my pay. When times were lean we ate beans, I was well aware that no one was waiting in the wings to bail this CEO out.   

[rwanders]

Maybe I'm missing something but there seems to be a contradiction here. The same folks who lament small mom & pop's going under are in favor of, or at least neutral in respect to large corporations receiving favorable treatment and tax supported bailouts.

Several thousand small businesses could employ millions and be healthier for all.

When I ran my business I held to this wacky notion that all invoices and payroll must be paid in full before I could receive my pay. When times were lean we ate beans, I was well aware that no one was waiting in the wings to bail this CEO out.   

Life, including the economic part, is full of contradictions. You're right, we romantisize our memories of the small quaint shop then promptly abandon them when the shiny new big box offers us a few bucks off. Bend over for the football team when they want us to pay for a new stadium, subsidize huge agribusiness with programs we thought would save the "family farm".

Then, feeling guilty, we hand out more $$ to more people and companies and the music plays on. Subsidies to businesses, small or large, and individuals have their place----IF they are temporary. They become destructive to the receivers and our economy when they serve to prop them up  long past their needs or viability. We lack the discipline of a normal economic system---trying to overcome the natural laws of the market place by using the brute force of the treasury and politics will only lead to wider and wider distortions and swings, both up and down until like a spinning top, we topple over. As we, and Obama, have found over the last three years, it's hard to get the top to spin again.

[Native_NM]

There is no contradiction.  There are no tax breaks for Lowe's that are not available to Ace or Dug's Hardware Store.  The fact that I choose to support local business does not mean that Home Depot should not be able to open a store across the street.  I support anyone's right to operate any business they want, wherever they want, as long as they are following local zoning, etc.

[dug]

I didn't mean for this to turn into HD vs. dug's hardware, In relation to the original topic all I meant was that many people, when presented with information suggesting that major corporations (banks in this case) are receiving beneficial treatment either dismiss it or defend it, and then wonder where all the old time small banks, or hardware stores have gone.

Things are broken, they need mended. That they ever will remains doubtful though who knows, bigger odds have been overcome.

[Native_NM]

Who are the bank's biggest customers?