Wall Street Aristocracy Got $1.2T in Fed Secret Loans

reply to post by Aloysius the Gaul

OK - what other loan periods are mentioned?

bloom.bg...

Have a look at this CHART, dude. See at the bottom, where it says "number of days in debt to the Fed"?
See that?

See how the MINIMUM number of days ranges from about 300 to almost 700?
I am not code-savvy enough to be able to insert a screen shot, and the copyright is Bloomberg's, so I can't upload the image via regular means. Sorry, I'm sure a visual chart, with color, would help you to grasp the concept much more easily.

Here is an extract from the New York Fed's page on programs.www.newyorkfed.org...

Home

Term Asset-Backed Securities Loan Facility

The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances or commercial mortgage loans. The facility was closed for new loan extensions against newly issued commercial mortgage-backed securities (CMBS) on June 30, 2010, and for new loan extensions against all other types of collateral on March 31, 2010.

The TALF began operation in March 2009 and was closed for new loan extensions on June 30, 2010.

Now, notice RIGHT HERE ........................................................>>^^^^^^^^^^^^^^^^^^^^^^^^^^^
see where it says LOAN EXTENSIONS?

new loan extensions

Loan extensions. That's like when you borrow money, and then when it comes due you say "can I have until next month?" and the lenders says (you hope), "wellllll, okay."

Here is another program:

Under the program, the Federal Reserve Bank of New York (FRBNY) provided three-month loans to the CPFF LLC, a specially created limited liability company (LLC) that used the funds to purchase commercial paper directly from eligible issuers. The commercial paper that was eligible for purchase was highly rated, U.S. dollar-denominated, unsecured and asset-backed commercial paper with a three-month maturity

Notice, Aloysius, the emboldened ^^^ bit directly above this sentence you are reading. In case my attempt to make arrows is not going to come out right, I'll re-snip the pertinent phrase:

three-month maturity

That snippet is from this Fed description of the program: www.federalreserve.gov...

It might also be of use for you to understand that these institutions were taking out MULTIPLE loans from MULTIPLE programs. Like when a person uses one credit card's line to pay off another that has come due. That can be done indefinitely, if that person simply takes out enough credit cards. That person just keeps rolling the debt out to a later payment due date. It's not rocket science. It's at best "creative accounting."

I want to let you know, in all fairness, that your attack did, in fact, encourage me to use these very early morning hours to FURTHER educate myself. And to make double sure I was accurate in my understanding of what the Bloomberg report said and how I paraphrased it. It's fascinating to learn new things. I encourage you, when you have the time and if you have the inclination, to peruse these links!

reply to post by Aloysius the Gaul


Oh, and:
here's where I pointed out that the 28-day loans were not the only ones mentioned:

The article ...mentioned all kinds of programs -

The $1.2 trillion peak on Dec. 5, 2008 -- the combined outstanding balance under the seven programs tallied by Bloomberg -- was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.

Just to clarify that I wasn't being a dick. I did show you where it mentioned other programs. And now you have a few links to find out more about those OTHER PROGRAMS which Bloomberg tallied! (see underlined clause above)

ETA: Maybe you just wanted to get into a semantic argument about any specific "length" mentioned (that is, the ONE they gave as an example -- specifically, the TAF). Like right here?

While the Fed’s last-resort lending >>>>programSfor example

@wildtimes

Thanks for further clarifying for those that don't understand. I did throw a flashy graph in there and some info, and your breakdown combined with mine makes it crystal clear.

Good info, and good stuff admitting that your ignorance was put to rest by someone challenging your facts. I also did more research to disprove the assailant.

Anyway - Cheers & Star

reply to post by sbctinfantry


You did great, with the flashy graph. I just think there are some .... uh....folks on here who might be more interested in discrediting these finds than in saying "Holy Cow, etc."

Toast and cheers, mate!