Tag Archives: Federal Reserve

Memo to Occupy Wall St: Obama's Your Man!

This guy gets it.
Seen at an Occupy protest in Jersey City yesterday:
[Source: UK’s Daily Mail]
After the 2008 $700 billion bailout of the fat cats of Wall Street — which increased the U.S. federal debt ceiling to $11.3 trillion from  $10.6 trillion — the Obama administration supported a second bailout of Wall Street  even bigger than what Congress wanted — than the bailout already approved by the House, the Wall Street Reform and Consumer Protection Act., sponsored by those two fat-cats-loving Democrats Barney Frank and Chris Dodd.
The Obama administration wanted the Federal Reserve to have unlimited amounts of money in the form of “loans” to failing businesses deemed to be friends of the Fed and “too big to fail.” The House bill contains an authorization for the Federal Reserve for $4 trillion in “secured loans” to bailout individuals, partnerships or corporations in financial distress. See page 506 of the House passed bill. [Source: Big Government, April 21, 2010]
I’ll write more on that $4 trillion in a future post.
On April 21, 2010, the Congressional Budget Office released a cost-estimate of enacting the legislation. The CBO admitted it “has not determined whether the estimated costs under the Act would be smaller or larger than the costs of alternative approaches to addressing future financial crises and the risks they pose to the economy as a whole.”
Despite that, Obama signed the second Wall St. bailout act into law on July 21, 2010.
A Wall Street Journal opinion piece speculated that the law would make it more expensive for startups to raise capital and create new jobs.
~Eowyn

Please follow and like us:
error0
 

Showdown: Will Federal Reserve Obey Court Order?

[youtube=https://www.youtube.com/watch?v=CPgwNdzvhG4]
H/T Kelleigh
~LTG
 

Please follow and like us:
error0
 

Thought-Provoking Fact of the Day

 “[Alan] Greenspan, perhaps the world’s foremost scientific authority on gullibility [and Chairman of the U.S. Federal Reserve from 1987 to 2006], had put $400,000 of his own retirement savings into funds that invested with Bernie Madoff….”
From Paul Hoffman, “Why Are Smart People Some of the Most Gullible People Around?,” Discover, Feb. 10, 2011.
~Eowyn

Please follow and like us:
error0
 

Federal Reserve's "Quantitative Easing" for Dummies

Early this month, your eyes probably glazed over at news that America’s central bank — the Federal Reserve — undertook a “Quantitative Easing (QE)” to jump start the sluggish non-existent economic recovery. Since this is the Feds’ second attempt at monetary stimulus (the first one failed miserably), it’s called QE2. 
Quantitative Easing is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system, generally through buying of the central government’s own bonds to stabilize or raise their prices and thereby lower long-term interest rates. This policy is usually invoked when the normal methods to control the money supply have failed, e.g. the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.
Did you understand that? Me neither! LOL
What I do know is that, having taught a college course on the politics and economy of Japan, Quantitative Easing was used unsuccessfully by the Bank of Japan Japanese government to fight domestic deflation after the country’s “bubble economy” bursted at the end of the giddy 1990s. Today, Japan’s economy, sadly, remains in the doldrums.
Here’s a great video that explains what the euphemistic “Quantitative Easing” means. It’s a hoot. Highly recommend!
[youtube=https://www.youtube.com/watch?v=PTUY16CkS-k]
H/t beloved fellow Dave from Atlanta.
~Eowyn

Please follow and like us:
error0