An important perspective, in light of our U.S. economic crisis – ‘Round 2’….
The Federal Reserve’s ‘secret liquidity lifelines’ for major banks:
Bloomberg LP filed a Freedom of Information Act (FOIA) lawsuit on Nov 7, 2008 to gain access to information regarding special emergency lending programs that the U.S. Federal Reserve had been running to help borrower banks deal with cash shortages and collateral deficiencies. The Fed fought the lawsuit, but ultimately lost.
Bloomberg gained access to more than 29,000 pages of previously secret loan documents and Fed spreadsheets, and published the highlights of those programs in late 2011.
According to Bloomberg, the top 15 recipients of Fed’s ‘secret liquidity lifelines’ were: Morgan Stanley $107 billion Citigroup Inc. $99.5 billion Bank of America Corp $91.4 billion Royal Bank of Scotland Plc $84.5 billion State Street Corp $77.8 billion UBS AG $77.2 billion Goldman Sachs Group Inc. $69 billion JP Morgan Chase & Co $68.6 billion Deutsche Bank AG $66 billion Barclays Plc $64.9 billion Merrill Lynch & Co Inc. $62.1 billion Credit Suisse Group AG $60.8 billion Dexia SA $58.5 billion Wachovia $50 billion
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The Fed ‘flooded’ the financial coffers of these major U.S. and foreign banks (with U.S subsidiaries) with trillions of dollars in direct cash transfers, credit guarantees, and balance sheet transfers of (often ‘sewage grade’) agency debt and MBS – and the principles of those institutions ended up making out very well.
Nobody took a serious haircut
Meanwhile, out in Main Street America did not fare so well… There were severe financial dislocations.
8.7 million Americans lost their jobs during the financial crisis years.
4.1 million American families lost their homes through completed foreclosures from September 2008 through December 2012, according to CoreLogic.
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It is now perfectly evident, here in ‘Round 2,’ that the Fed’s massive 2008-2010 liquidity transfers to Wall Street’s financial sector did not secure any measure of long-term financial security for America.
Long-term financial security will be a reality only when the foundation of our economy, U.S. citizens themselves – those at ‘ground level’ who make the economy work – is financially sound.
It is entirely within our power to secure America’s foundation for the future. It must come through through massive ‘ground level’ debt elimination, extraordinary reductions in dependence on government, healthy and durable economic growth, an unprecedented reduction in the debt profile of federal, state and local government entities, and economic liberty for all Americans..
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan – An Economic Acceleration Plan for a
$75,000 per U.S. citizen – Leviticus 25 Plan 2021 (3588 downloads)