Here is an article from Bloomberg describing the amounts received as loans from the Federal Reserve during the market blow up in 2008 and 2009. While taxpayers were enraged, and rightfully so, with the TARP bailout, which provided $300 billion to troubled banks, automakers, and other companies with strong lobbying arms, taxpayers should really be up in arms at the Fed, who provided $1.2 Trillion to the banks during the same time. The reason this information is only coming out now is Bloomberg won a Freedom of Information Act (FOIA) lawsuit against the Federal Reserve who was not going to release this information.
This shows the secret, shady workings of the Fed along with the sole purpose the Fed exists: to help the banks. We need to end the Federal Reserve because it shows the government is working to help the banks, not the taxpayer. Rather than taking over the banks, writing down the assets, and then re-launching the banks, we, the taxpayers, will pay for this bailout with taxes and higher prices. Why higher prices? When the Fed prints this money to give to the banks, it causes the price of commodities, goods and services to rise. We pay more to live. Had the government taken over the banks like Sweden did during its banking crisis, the banks’ shareholders and bondholders would have lost their investment, but the taxpayer would have been spared. Even more importantly, we would be done with the liquidity mess. As it stands now, the banks will probably face another crisis when the European debt situation finally blows up.
Hat tip: The Big Picture