And transfuse they did.

The U.S. Treasury turned the spigot into the ‘flow’ position with the Troubled Asset Relief Program (TARP).

And the Fed followed that up by turning the spigot into the ‘gusher’ position with their emergency lending, discount window lending, and their QE-based purchases of cesspool-grade MBS and agency debt from various global lending institutions.

……………………………………………………………

Notes on the liquidity transfusions:
SIGTARP, the oversight agency of the Troubled Asset Relief Program (TARP), in its July 2009 report, vetted by Treasury, noted that the U.S. Government’s “Total Potential Support Related to Crisis” (page 138) amounted to $23.7 trillion. While this figure represents a backstop commitment, not a measure of total potential loss, it is nonetheless an astounding degree of support, in the form of liquidity infusions, credit extensions and guarantees, various other forms of assistance for financial institutions and other business entities affected by the financial crisis.

One example of the mechanics of these backstop commitments involved two of the major investment-banks which were at the forefront of the U.S. financial crisis, Goldman Sachs and JP Morgan who, through their high-risk exposure to subprime debt and derivatives, received enormous financial assistance at the expense of U.S. taxpayers.

Goldman Sachs and J.P. Morgan received these direct liquidity infusions during the financial crisis via Fed disbursements through the Primary Dealer Credit Facility and numerous other credit facilities. The two (according to ZeroHedge 4-1-11) “had the temerity to pledge bonds that had defaulted (i.e. had a rating of D)… as in bankrupt, and pretty much worthless. . . that have no value whatsoever. . .” Goldman Sachs received $24.7 million and JP Morgan $1.4 million on the worthless collateral (September 15, 2008). Goldman Sachs pledged D-rated securities again September 29, 2008 and received $82.7 million (Citigroup received $102.8 million; Merrill Lynch – $217.8 million; Morgan Stanley – $261.0 million; UBS – $202.2 million).

In addition, the same two investment banking giants, Goldman Sachs and JP Morgan, earned free interest (again at taxpayer expense) through their access to credit extensions at the Federal Reserve discount window. Within two years, Goldman Sachs was paying out $111.3 million in “delayed bonuses” for the years 2007 and 2009 (NY Times 12-15-10).

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U.S. citizens deserve nothing less than the same direct access to liquidity extensions, through a ‘Citizens Credit Facility,’ to restore financial health at the family level, that were provided to major domestic and foreign financial institutions during the financial crisis.

The initial credit extension outlay with The Leviticus 25 Plan ($18.0 trillion – assuming an 80% participation rate by U.S. citizens) would hardly be prohibitive, in light of the trillions of dollars in Federal Reserve and Treasury outlays over the past 5 years to major U.S. banking and financial institutions (Morgan Stanley, Citigroup, Bank of America, State Street Corp, Goldman Sachs, Merrill Lynch, JPMorgan Chase, Wachovia, Lehman Brothers, Wells Fargo, Bear Stearns) and major foreign financial institutions (Royal Bank of Scotland, UGS AG, Deutsche Bank AG, Barclays, Credit Suisse. Dexia, BNP Paribas).

The Federal Reserve’s various credit facilities, discount window transactions, emergency loans, Foreign Exchange swap lines, Interest on Excess Reserves (IOER) for foreign banks, and Treasury’s TARP and stimulus programs have done little to improve the financial status for the majority of American families. These government programs have also done nothing to change the dominance and risk profile of “too big to fail banks,” and they have done little to lessen the counterparty default risk in the global derivatives markets.

The time is now to balance things out, and grant U.S. citizens the same direct access to liquidity that was provided to Wall Street’s financial sector.

Special Note: The Leviticus 25 plan generates $465 billion budget surpluses over each of the first 5 years of activation – and pays for itself entirely over a 10-15 year period. There is no other plan in America that can match the raw economic power of this plan.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$75,000 per U.S. citizen – Leviticus 25 Plan 2020 (3268 downloads)

Alan Greenspan says economy will start to fade “very dramatically” because of entitlement burdens – CNBC, Apr 12, 2019 – Excerpts:

Key points:

• Economic growth won’t last as the U.S. labors under the burden of growing entitlement programs, former Fed Chairman Alan Greenspan tells CNBC.
• He also cites the effects of weakness around the world.

Economic growth won’t last as the U.S. labors under the burden of growing entitlement programs and weakness around the world, former Federal Reserve Chairman Alan Greenspan told CNBC.

The long-time central bank chief repeated his warnings about the weight that Social Security, Medicare and other programs are having on what have been otherwise solid gains over the past few years.

“I think the real problem is over the long run, we’ve got this significant continued drain coming from entitlements, which are basically draining capital investment dollar for dollar”….

“Without any major change in entitlements, entitlements are going to rise. Why? Because the population is aging. There’s no way to reverse that, and the politics of it are awful, as you well know,” Greenspan added.

While he said the economy looks “reasonably good” in the short run, he expects that over the longer term, growth “fades very dramatically.”

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According to Greenspan, “entitlements are going to rise”… and “there’s no way to reverse that.”

Chairman Greenspan is mistaken.

There is a powerhouse new economic plan which will dramatically change the entitlement spending landscape. It will also generate $465 billion budget surpluses for the federal government and some life-saving budget improvements at the state and local levels.

It will re-fire the economic growth engines, bolster the U.S. Dollar on a long-term basis, stabilize the banking industry, and restore financial security and economic liberty for American families..

The Leviticus 25 Plan 2020 – An economic acceleration plan for America

$75,000 per U.S. citizen / Plan summary: http://leviticus25plan.org/statistics/

The Leviticus 25 Plan

“PROCLAIM LIBERTY THROUGHOUT ALL THE LAND

UNTO ALL THE INHABITANTS THEREOF”  Leviticus 25:10

Andrew Huszar directed the Federal Reserve’s [QE1] $1.25 trillion agency mortgage-backed security purchase program which kicked off during March 2009.

Here are his after-thoughts…or “confessions”  (Andrew Huszar: Confessions of a Quantitative Easer – WSJ.com – excerpts):

“We went on a bond-buying spree that was supposed to help Main Street. Instead, it was a feast for Wall Street.

“I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what is really is: the greatest backdoor Wall Street bailout of all time.“

Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system’s free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs.

The Fed said it wanted to help—through a new program of massive bond purchases. There were secondary goals, but Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn. For this reason, he originally called the initiative “credit easing.”

In its almost 100-year history, the Fed had never bought one mortgage bond. Now my program was buying so many each day through active, unscripted trading that we constantly risked driving bond prices too high and crashing global confidence in key financial markets. We were working feverishly to preserve the impression that the Fed knew what it was doing.

It wasn’t long before my old doubts resurfaced. Despite the Fed’s rhetoric, my program wasn’t helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn’t getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

Trading for the first round of QE ended on March 31, 2010. The final results confirmed that, while there had been only trivial relief for Main Street, the U.S. central bank’s bond purchases had been an absolute coup for Wall Street. The banks hadn’t just benefited from the lower cost of making loans. They’d also enjoyed huge capital gains on the rising values of their securities holdings and fat commissions from brokering most of the Fed’s QE transactions. Wall Street had experienced its most profitable year ever in 2009, and 2010 was starting off in much the same way.

That was when I realized the Fed had lost any remaining ability to think independently from Wall Street. Demoralized, I returned to the private sector.

Where are we today? The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history.

And the impact? Even by the Fed’s sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn’t really working.

Having racked up hundreds of billions of dollars in opaque Fed subsidies, U.S. banks have seen their collective stock price triple since March 2009. The biggest ones have only become more of a cartel: 0.2% of them now control more than 70% of the U.S. bank assets.”                                                                               _____________________________

The Leviticus 25 Plan levels the playing field by providing direct credit extensions to U.S. citizens.  This would provide real, sustainable economic stimulus for Main Street America.  And it would restore economic liberty across the land.

America, it is time for a change.  It is time for a bold, new economic plan.

The Leviticus 25 Plan – An economic acceleration plan for America

$75,000 per U.S. citizen.

  The World has Learned Nothing from the Global Financial Crisis

ZeroHedge, Apr 3, 2019 – Excerpts:

After the 2008 crisis forcefully shoved the faces of most countries directly into the mess they had created, most major global economic participants arrived at the obvious conclusion that since debt caused the crisis to begin with, a deleveraging was necessary in coming years.

But instead, just the opposite has happened, according to Bloomberg: central banking cowardice and flawed monetary policy have, over the last decade, dug the world deeper into the hole it was in prior to the crisis. In the U.S., for instance, debt has shifted between industries, but it has not gone away. China, once relatively responsible in its debt positioning, has now emerged as the newest bastion for taking on debt to encourage growth. 

Here’s a graphic representation of debt in 2007: 

And where we stood in 2018:

It was well known in Wall Street circles that there was simply too much leverage prior to the 2008 crisis.

[snip]

By 2008, household debt accounted for 98% of U.S. GDP. While spending excesses have been reined in to some degree, the country is seeing new types of debt come to prominence. Auto loans and student loans, for instance, have doubled since the crisis, moving from $1.36 trillion to $2.73 trillion.

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America’s powerful new deleveraging plan re-targets liquidity infusions into Main Street America rather than Wall Street’s financial sector – by granting U.S. citizens the same direct access to ‘liquidity-for-debt-relief’ that was provided by the Federal Reserve to major banks during the great financial crisis 2007-2010): Morgan Stanley, Citigroup, Bank of America, State Street, JP Morgan, Goldman Sachs, Merrill Lynch, Barclays, Deutsche Bank, UBS, Royal Bank of Scotland, BNP Paribas, and others..

It is time for America to restore financial health for citizens, unshackle itself from a massive debt load… and ‘power up’ the economic engines…

Main Feature: $465 billion budget surpluses for 2020-2025, plus robust debt relief for state and local governments: http://leviticus25plan.org/statistics/

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$75,000 per U.S. Citizen – Leviticus 25 Plan 2018 (3143 downloads)