Wednesday, August 24, 2011

Bitch Slapped

Deception is the modus operandi when it comes to finance and how we the people continue to allow ourselves to be bitch slapped by the Fed regarding the biggest theft in history, the latest installment of which comes from a Bloomberg article titled, Wall Street Aristocracy Got 1.2 Trillion in Fed's Secret Loans

"Citigroup Inc. (C) and Bank of America Corp. (BAC) were the reigning champions of finance in 2006 as home prices peaked, leading the 10 biggest U.S. banks and brokerage firms to their best year ever with $104 billion of profits.

By 2008, the housing market’s collapse forced those companies to take more than six times as much, $669 billion, in emergency loans from the U.S. Federal Reserve. The loans dwarfed the $160 billion in public bailouts the top 10 got from the U.S. Treasury, yet until now the full amounts have remained secret.

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress.

“These are all whopping numbers,” said Robert Litan, a former Justice Department official who in the 1990s served on a commission probing the causes of the savings and loan crisis. “You’re talking about the aristocracy of American finance going down the tubes without the federal money.”

What's astounding about this besides the enormous amount of money given to the banks is the illegality of many of the foreclosures these so called titans of finance perpetrated on homeowners in order to cover losses while continuing to put together exotic toxic waste packages that bankrupted America and Europe with unprecedented speed and efficiency.

Click the graphic below to view Bloomberg's interactive chart showing the Fed's largesse provided to the Too Big To Fail banks who have failed us in ways impossible to comprehend.

"I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. ... You are a den of vipers and thieves."
—Andrew Jackson, 1834, on closing the Second Bank of the United States;

It's too bad we don't have an Andrew Jackson in the White House today, ready, willing and able to return the power of the purse back to the government as expressly stated in the Constitution, something thoughtlessly given away by Woodrow Wilson when he instituted the Fed and IRS as the new controllers of finance in 1913: 

"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;"

Toto exposes the man behind the curtain: :)

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