bailing out the banks... all around the world!

[star-white.livejournal.com]

"Skrillex & Mosquito Repellent Advertisement" (Watch on YouTube)

Florida Democrat Senator Alan Grayson drills Ben Bernanke, the Chairman of the Board of Governors of the United States Federal Reserve over the handing out of half a trillion dollars to foreign banking institutions. Grayson's main argument is over the constitutionality of the power the federal reserve has to hand these monies over without any oversight by the United States Congress. Bernanke defends the federal reserves right to hand out these funds based on the congressional approval of the Federal Reserve act.

In my opinion, the Federal Reserve now believes it is also a government body that has the power to loosen the purse strings and pass billions of dollars out as it seems fit. Feel free to argue the original intent of the Federal Reserve Act, or even against the existence of a national banking body.

Comments

[abomvubuso.livejournal.com]

Thanks for re-posting this with an added comment, and once again sorry for having deleted the first version.

[star-white.livejournal.com]

No apology needed. I have no excuse for being lazy. I am sorry you had to take the time to remind me, I should have reread the posting instructions.

[mahnmut.livejournal.com]

Take a room you two!

[lordtwinkie.livejournal.com]

yea seriously wtf is up with this love fest.

[mahnmut.livejournal.com]

Well, it was kinvore who recently declared abomvubuso to be the Paula Abdul of LJ mods - he loves everyone and he cannot comprehend how come it's not possible that everyone else loves everyone.

[the-rukh.livejournal.com]

It... currently does?

[underlankers.livejournal.com]

The Fed's done more good than it has harm. And the Andrew Jackson model of federal banking might have worked in the 19th Century but this is the 21st.

[root-fu.livejournal.com]

The fed has done significant harm as opposed to good? (http://www.wnd.com/index.php?pageId=59405) (This is the correct link, srry)

[underlankers.livejournal.com]

World Net Daily?

I would trust that as much as I'd trust a history of Judaism written by Adolf Hitler.

[root-fu.livejournal.com]

The same story appears elsewhere. You can probably find it on CNN or whichever news source you prefer. Many well known and respected professionals credit the Fed with having caused these latest economic troubles as well. Example, Steve Forbes:

[xforge.livejournal.com]

I'm just boggled by the vision of a representative from Useless and Oh Kaller, which are probably Central Florida's deepest bastion of narrowminded redneck idiocy, not just being a Democrat but arguing from such clarity and reason. Oh no, wait, I feel something... strange... it's... OMG it's respect for a politician in my home state. ::dies::

[soliloquy76.livejournal.com]

He's doing exactly what he said he would do in his campaign, so I applaud him for that. Also, I doubt there were many votes for him coming from Eustis and Ocala. Orlando got him elected. You're welcome. :)

[xforge.livejournal.com]

Maybe the artsy-fartsy bunch in Mount Dora voted for him too = )

[soliloquy76.livejournal.com]

I'm curious as to whether this $500 bazillion investment actually paid off.

[dwer.livejournal.com]

the TARP bailout?

The NYT says that the Federal Government has made a profit of $4billion.

http://www.nytimes.com/2009/08/31/business/economy/31taxpayer.html?th&emc=th

These early returns are by no means a full accounting of the huge financial rescue undertaken by the federal government last year to stabilize teetering banks and other companies.

The government still faces potentially huge long-term losses from its bailouts of the insurance giant American International Group, the mortgage finance companies Fannie Mae and Freddie Mac, and the automakers General Motors and Chrysler. The Treasury Department could also take a hit from its guarantees on billions of dollars of toxic mortgages.

But the mere hint of bailout profits for the nearly year-old Troubled Asset Relief Program has been received as a welcome surprise.

[soliloquy76.livejournal.com]

Yeah, I saw that today. Thanks for the reply, though.

[root-fu.livejournal.com]

For a conspiracy theory laden "documentary" The Money Masters (http://video.google.com/videoplay?docid=-515319560256183936) presents an interesting, if not partly fictional account of the Federal Reserve's origins.

The concept of a central banking system composed of private sector banks which are primarily concerned with profits, simultaneously attempting to enforce government policy, which are concerned with what is best for its citizens, represents a conflict of interests in my opinion that should not exist in a legitimate government. In that vein, I would suggest that the Fed is corrupt and should be disbanded in favor of a body with more intrinsic neutrality.

[star-white.livejournal.com]

Well I just don't trust private sector banks. There is zero accountability when dealing with the private sector on immense scales.

According to the video...

[sophia-sadek.livejournal.com]

... the Fed didn't actually dole out the money, but lent it at interest.

This is the kind of thing that it does in order to keep the dollar afloat as a viable currency on the global money market. Many American businesses that operate overseas depend on such activity on the part of the Fed.

Re: According to the video...

[star-white.livejournal.com]

Well the issue I have with it is not what the money lent out was for, but that the Fed did it with no Congressional action, which is a primary role of congress in controlling the "purse strings". In other words, is the Fed now also able to do as it pleases with federal money without the Congressional approval?

Re: According to the video...

[the-rukh.livejournal.com]

Congress implicitly approved it, they have the power to tell the fed to not do things, but didn't. They're still the ones with the power over the purse strings.