The Biggest Bail-out of Them All

The Wall Street Journal got this right in an editorial today:

“Meantime, the Fed’s near-zero interest rate policy will continue to disguise the real cost of government borrowing. One reason the Obama Administration can keep running trillion-dollar deficits is because it can borrow the money at bargain rates. Stanford economist and Journal contributor John Taylor says the Fed has bought more than 70% of new Treasury debt issuance this year.

All of this will create a fiscal cliff of its own when interest rates start to rise. The Congressional Budget Office says that every 100 basis-point increase in interest rates adds about $100 billion a year to government borrowing costs. Pity the President and Congress who have to refinance $15 trillion in debt at 6%. If Mr. Bernanke really wants to drive the President and Congress to reduce future spending, he shouldn’t keep bailing them out with easier money

The overarching illusion is that ever-easier monetary policy can return the U.S. economy to a durable expansion and broad-based prosperity. The bill for unbridled government spending stimulus is already coming due. Sooner or later the bill for open-ended monetary stimulus will arrive too.”

Click here for the full article.

4 comments
LiberatedCit
LiberatedCit

pss

 

Another big bail out for the banks on the way? The banks are facing a bunch of new lawsuits and Obama wants to get rid of DeMarco because he actually made them pay some. His making home affordable really only helped the banks with more taxpayer dollars since most of the people who got that still defaulted anyway now he is pushing for more.

 

Obama administration launches housing PSA

 

http://www.politico.com/politico44/2012/12/obama-administration-launches-housing-psa-151723.html

 

Donovan: Taxpayer bailout option still in play for FHA

 

http://bankcreditnews.com/news/donovan-taxpayer-bailout-option-still-in-play-for-fha/6410/

 

Mortgage Crisis Presents a New Reckoning to Banks

 

http://www.nytimes.com/2012/12/10/business/banks-face-a-huge-reckoning-in-the-mortgage-mess.html?_r=0&adxnnl=1&adxnnlx=1355490018-m4RzOi9QdOLuzU4D0qXarAInsight:

 

Insight: Fannie Mae, Freddie Mac clamping down on banks

 

http://www.reuters.com/article/2012/08/15/us-mortgages-repurchases-idUSBRE87D14V20120815

 

Is Obama Getting Rid of the FHFA’s Ed DeMarco to Bail Out the Banks?

 

http://www.nakedcapitalism.com/2012/12/is-obama-getting-rid-of-the-fhfas-ed-demarco-to-bail-out-the-banks.html#AD2tcq0rc4UQt0gs.99

 

Time to Kill HAMP

 

President Obama’s beloved foreclosure-prevention scheme, the Home Affordable Modification Program (HAMP), was a fraud from Day One: It is designed to do nothing but camouflage the effects of the housing meltdown. It is based on bribery — paying the banks to modify (or pretend to consider modifying) mortgages that they really had no business or interest in modifying. 

 

http://www.nationalreview.com/articles/261152/time-kill-hamp-kevin-d-williamson#

 

Report: Cronyism, political donations likely behind Obama, Holder failure to charge any bankers after 2008 financial meltdown

 

http://dailycaller.com/2012/08/07/report-cronyism-political-donations-likely-behind-obama-holder-failure-to-charge-any-bankers-after-2008-financial-meltdown/?print=1

 

Unlimited credit for GSEs seen as backdoor bailouts

 

snip

 

And Darrell Issa, the top Republican on the House Oversight and Government Reform Committee, called it "a continuation of the bailout policies that have mortgaged away the future solvency of our country."

 

http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105

 

Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars

 

http://www.zerohedge.com/article/obamas-budget-has-one-small-missing-piece-63-trillion-dollars

 

Corporate Crime, Russia, Peter Orszag and Getting Away with Murder

 

http://corporatecrimereporter.com/morgenson07282011.htm

 

Barack’s Wall Street Problem is Now America’s

 

http://www.noquarterusa.net/blog/4939/baracks-wall-street-problem-is-now-americas/

 

 

LiberatedCit
LiberatedCit

I don't know if that's the biggest bailout there was $75 Trillion the Fed dumped on the FDIC which is also taxpayer backed and the TAG (FDIC Insurance) program that  taxpayers also guaranteed for $1.5 Trillion of non interest bearing accounts. The extension of that was just voted down today not sure if it's totally dead though. The bank bailouts were trillions we even bailed out foreign banks but it's certainly a big bail out none the less. Thing is the politicians put the Fed in place and they could get rid of it but they won't because they love debt slaves and power. Just wait until the market forces interest rates to rise (big eyes)..

 

Blankfein: Borrow As Much As You Can at These Rates Because Interest Rates Are Headed Higher

 

http://www.economicpolicyjournal.com/2012/12/blankfein-borrow-as-much-as-you-can-at.html

 

Then again if they rise it would reward the responsible who did the right thing paid off their debt and saved another plus it would slow down govt. spending. We had low interest rates with Carter and the economy was a disaster.  In the early 80's after rates rose to 20% our economy improved.

 

Cure for Economic Slumps Seen in Raising Rates: Cutting Research

 

http://www.bloomberg.com/news/2012-11-23/cure-for-economic-slumps-seen-in-raising-rates-cutting-research.html

 

Once you understand the details of modern central banking, you are able to step back and see that it truly is a way for the government to use the printing press to pay it's bills

 

http://mises.org/daily/4029

 

HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades

 

http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

 

http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html

 

Foreign Banks Benefited from U.S. Bailout

 

http://www.thestreet.com/story/10935822/1/foreign-banks-benefited-from-us-bailout.html

 

The Fed's $16 Trillion Bailouts Under-reported

 

http://www.washingtonpost.com/business/economy/federal-reserve-audit-highlights-possible-conflicts-of-interest/2011/07/21/gIQAJbbnSI_story.html

 

http://www.forbes.com/sites/traceygreenstein/2011/09/20/the-feds-16-trillion-bailouts-under-reported/

 

Taxpayers still owed more than $200 billion from bailouts

 

http://money.cnn.com/2012/09/11/news/companies/taxpayer-bailouts/index.html