The FED refuses to Identify Where 2 Trillion went

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.

Bloomberg article

I looked around and did not see this story posted yet, if it is and I missed it, Mods please take down and link as I really want to talk about this.

First of all, I cannot believe that this 'new' news. The Fed began bailing out the banks to the tune of ten's, and going to 100's of billions of dollars a day in the mid-summer.

This was after thay had been doing the exact same thing using the exact same circumventing Congress loopholes since last Spring on behalf of the Brokerage firms on Wall St. I can guaran-goddmaned-tee-ya that they put more into Wall St.

Based on the figures I was reading mid-summer the banks were receiving considerably less than the Street was at its height of Fed bailout. I believe the The fed was using something called 'borrowing windows'.

Anybody around here know more about this?

Look harder

www.abovetopsecret.com...

Or here . . .

BINGO!

Thanks Unit, I glanced at the BA News forum and missed it. I think it is okay if it is here too, I saw a Mod saying that BA News can be discussed in other forums as well. I think that is what happened to me a few weeks ago with a duplicate thread, I did not understand why.


Anyway, I would like to hear what you, those who frequent this forum, have to say as most of you seem to have an informed handle on various aspects of economics, the economy and this 'crisis' in particular.

I'm also genuinely interested if anyone has a number for what was dispersed to the Street between March and August of the this year. I have not been able to find that info.



[edit on 10-11-2008 by TheWayISeeIt]

where did the 2 trillion go? Well, they might just say it never existed in the first place. sorry I dont have anything intelligent to add, but I do believe this is what the deal is.

Okay, on my quest find out what The Fed has given the Street -- investment frims -- since March. Let's start in March when these 'borrowing windows' opened up.

Big Wall Street investment companies have jumped all over the Federal Reserve's unprecedented offer to obtain emergency loans, borrowing more than doubled than in the program's debut week.

Those firms averaged $32.9 billion in daily borrowing over the past week from the new lending program, compared with $13.4 billion the previous week, the central bank reported Thursday. The program, which began last Monday, is part of the Fed's effort to aid the financial system.

On Wednesday alone, lending reached $37 billion.

That was on March 27th, one week into it

On October 24th this was their weekly reported take:

For the week ending Wednesday, investment firms drew $111.3 billion. That was down from $131 billion in the previous week. This category was broadened last week to include any loans that were made to the US and London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley, and Merrill Lynch.

The Fed report also showed that over the past week $114.2 billion worth of loans were made to money market mutual funds - via banks - to help the funds, which have been under pressure as skittish investors demand withdrawals. The Fed rolled out a new effort earlier this week to help shore up mutual funds.

LINK

It is my understanding that The Fed did not start doleing (sp?) out to the commercial banks until July. Given these numbers, can someone -- who can do math, cause it ain't me -- figure out an estimate that went to the Street?

Thanks!
TWISI

reply to post by TheWayISeeIt

That way. It all went that way ---> www.swconsult.ch...


Tell me mirror on the wall
who's the richest of them all?