The Morgan Stanley report went on to conclude, “In short, it is impossible for governments to grow their way back to solvency.” All they can do is shuffle debt around, ostensibly for the benefit of powerful, politically connected constituencies.
The U.S. Government and Federal Reserve fire-hosed trillions of dollars in liquidity transfers (TARP, emergency lending, stimulus programs, bailouts) to major global financial institutions and politically-connected constituency groups during the great financial crisis (2007-2010).
In addition, the Federal Reserve purchased European debt – of all things. They have provided trillions of dollars in credit extensions to many of the very domestic and foreign banks that triggered the banking crisis in the Fall of 2008.
One of the more ‘visible’ bailouts came courtesy of the U.S. Government on behalf of Goldman Sachs. Goldman had purchased credit default swaps (CDS) from AIG, but diid not perform due diligence to verify that AIG had adequate reserves to cover a potentially massive CDS payout.
They did not, and when the default wave tsunami hit, AIG turned their pockets inside out (no money). The U.S. Government (that is to say, ‘taxpayers’) then stepped in to ‘cover’ the monumental Goldman bet that went sour:
“…according to the terms of the bailout deal struck when AIG was taken over by the state in September 2008,Goldman was paid 100 cents on the dollar on an additional $12.9 billion it was owed by AIG”
Read more: http://www.rollingstone.com/politics/news/wall-streets-bailout-hustle-20100217#ixzz21kDwPRyY
And on to the Federal Reserve ‘rescue’ initiatives…
Federal Reserve – credit extensions – allowing two major investment banks(Goldman Sachs and Morgan Stanley) to quickly receive commercial bank charters,allowing them to qualify for near-zero interest rate loans, with which to purchase Treasuries – and earn ‘free money.’ Lots of it.
Federal Reserve – Primary Dealer Credit Facility (PDCF) allowing major banks to pledge sub-investment grade collateral to qualify for additional near-zero interest rate loans – with which to purchase Treasuries and earn more‘free money.’
Federal Reserve – Temporary Liquidity Guarantee Program (TLGP) for the big money center banks… ‘worth trillions.’
Federal Reserve – Public Private Investment Program (PPIP) – allowing banks to ‘off-load’ worthless assets onto the Fed balance sheet.
Government-based ‘Central Planning’ did nothing to restore long-term economic viability for America and financial security for U.S. citizens and their families.
It is time now for a new initiative.
The Leviticus 25 Plan provides the comprehensive mechanism for American families to be granted the same direct access to liquidity that the Federal Reserve so generously provided to Wall Street’s financial sector during 2007-2010.
The Leviticus 25 Plan will pay for itself over a 10-15 year period through ‘recapture provisions’ and economic growth. And the ‘ripple out’ effect will yield efficient benefits for government tax revenues, small business revenues, the labor market,housing… and even banks – in the long run.
No other plan will deliver such benefits and set America back on course for financial stability and economic liberty for American families.
The Leviticus 25 Plan – An Economic Acceleration Plan for America $75,000 per U.S. citizen – Leviticus 25 Plan 2018 (3022 downloads)