Secret US Bank Bailout Price – Over $7.7 TRILLION

10 12 2011

Bloomberg News did an exposè –

. . .  the Fed had committed US $7.77 trillion in below-market loans and guarantees to rescuing the financial system; and that these nearly interest-free loans came without strings attached.

The Fed insisted that the loans were repaid and there have been no losses, but the Bloomberg report said the banks reaped a $13 billion windfall in profits; and “details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.” . . .  (more)

and we like this part of the article:

To fix the system, the profits need to be returned to the 99%. How that could be done was suggested by radio host and political commentator Thom Hartmann in a recent editorial:

Have the central bank owned by the US government and run by the Treasury Department, so all the profits … go directly into the Treasury and you and I pay less in taxes…

For a model on the local level, he pointed to the Bank of North Dakota:
The good people of North Dakota … established something very much like this – the Bank of North Dakota – and it’s kept the state in the black, and kept its farmers, manufacturers and students protected from the predations of New York banksters for nearly a century. It’s time for every state to charter their own state bank, just like North Dakota did, and for the Treasury Department to either buy the Fed from the for-profit banks that own it, or simply nationalize it.

End the Fed, end the problem – F.C.