How the FAscist Bought Wall Street with Tax Payer Money

[JimBowie1958]

2013 Is Bernanke's Year: Unlimited QE And Total Control Of The Fed - Forbes

Bernanke and several of his central bank colleagues around the world have unleashed a new era of monetary policy, marked by zero-bound nominal interest rates coupled with unprecedented and massive balance sheet expansion. In this post-financial crisis world, the Fed has taken a Keynesian edict and turned it on its head: instead of the government stepping in after a crisis to make up for the loss of aggregate demand from the private sector, it has fallen to central banks.

Through that process, the Federal Reserve has become the most important market participant, flooding markets with liquidity and owning more than a third of the Treasury market by the end of next year, according to Barclays’ economics team. The latest iteration of their asset purchases, or QE4, consists of $40 billion a month in RMBS purchases and $45 billion in unsterilized Treasury purchases, meaning the Fed’s balance sheet will grow at a rate of $85 billion until the Fed sees a substantial improvement in labor markets.

The Fed is set to turn even more bullish in 2013, as its natural rotation sees two centrists and Jeffery Lacker, head of the Richmond Fed and a lone dissenter in the FOMC, replaced. In their place will come Esther George of the Kansas City Fed (a moderate hawk, which means she’s mildly opposed to more accommodation) and James Bullard of the St. Louis Fed (who has the potential to be a dissenter, according to Barclays), along with ultra-doves Charles Evans and Eric Rosengren. Furthermore, Minneapolis Fed chief Narayana Kocherlakota, a former dissenter, has quietly moved to a more dovish stance, adding further support for the Chairman.

Visualizing The True Cost Of The First Bank Bailout: $3.5 Trillion And Rising At Over $1 Trillion Every Year | Zero Hedge

In his latest letter to clients (which we will present shortly), Diapason's Sean Corrigan has one chart that explains beyond a shadow of a doubt what the true cost of the (First) Great Financial Crisis, the failure of Lehman, and the bailout of the US financial sector, is. The premise is ridiculously simple: the chart below compares the trendline of US debt before and after the Lehman from September 2008, and the rescue of everyone else who unlike Dick Fuld, was in Hank Paulson's good graces. What is immediately obvious is that US debt is currently $3.5 trillion higher than where it would be had America's banks not received a rescue. That is Sean's conclusion. It is however incomplete. The truth is that this is a proportional increase which if extrapolated into the future, means that every year the US will incur well over $1.2 trillion each and every year as a result of bailing out the banks. That is the true cost to Americans regardless of what Tim Geithner may claim. But note how we said First. Unfortunately, the Second Great Financial Crisis, that of bailing out insolvent sovereigns, is currently and process. And when all is said and done, the global cost in terms of new "trendline" debt will be many more trillions in incremental debt every year. And despite what economic voodoo theories say, near infinite debt always ends in near infinite pain. It will this time too. Guaranteed.

Daily Kos: The total cost of the Bank Bailout

#2: How big was the bailout?

Many are still under the impression that TARP = The Bailout.
In fact, TARP was only a small part of the Wall Street bailout. Most of the bailout was accomplished through the Federal Reserve.

The net total? As of November 10, 2011, it was $29,616.4 billion dollars — (or 29 and a half trillion, if you prefer that nomenclature). Three facilities—CBLS, PDCF, and TAF— are responsible for the lion’s share — 71.1% of all Federal Reserve assistance ($22,826.8 billion).
$29 Trillion is around twice the size of America's GDP.
The Federal Reserve claims they only lent $1.7 Trillion to the big banks. Why the huge difference in totals? Because the Fed only counts the most outstanding at any one time.
Here's a quick list of the Fed borrowers:

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
"All Other Borrowers" - $2.639 trillion

Obama lie number 3,722: No more bank bailouts.

[ame=http://www.youtube.com/watch?feature=player_embedded&v=Mz4uoCHeWFY]President Obama Hails Progress on Wall Street Reform - YouTube[/ame]

You know, it's pretty hard to keep up with all this liars bullshit lies.