Question: How Are The Federal Reserve Programs Different Than ‘Just Handing Rich People Money?’ Answer: It’s Not
So says Matt Taibbi, “It is as though someone sat down and made a list of every individual on earth who actually did not need emergency financial assistance from the United States government, and then handed them the keys to the public treasure.”
Maybe we should just use non-recourse 0% interest loans from the Federal Reserve to balance the budget? We could use 1% of the American People as collateral, which while a bit harder to trade on the market are at least not made of fiberboard and cheap siding on top of often toxic drywall. At least not most of us. And like the loans that have already been given, if we fail to pay them back then the Fed just shrugs and opens up a new program to loan from.
Fun fact from the piece: “And at a time when America is borrowing from the Middle East at interest rates of three percent, why did the Fed extend $35 billion in loans to the Arab Banking Corporation of Bahrain at interest rates as low as one quarter of one point? Even more disturbing, the major stakeholder in the Bahrain bank is none other than the Central Bank of Libya, which owns 59 percent of the operation. In fact, the Bahrain bank just received a special exemption from the U.S. Treasury to prevent its assets from being frozen in accord with economic sanctions. That’s right: Muammar Qaddafi received more than 70 loans from the Federal Reserve, along with the Real Housewives of Wall Street.”