An important perspective, in light of the U.S. Treasury’s exploding budget deficits, economic stagnation, and financially-strapped working class Americans – and the Fed’s recently announced ‘QE Lite’ Reserve Management asset purchases…
A Look back…
The Federal Reserve’s ‘secret liquidity lifelines’ for major banks 2008-2010:
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 the very firms that in large part precipitated the great financial crisis with their subprime lending gambits and insufficient risk management strategies:
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
………………………………………………………………………..
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.
None of them took a haircut
Meanwhile, U.S citizens 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.
___________________________________
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..
Main Street America Republicans have a plan to correct these ongoing financial security issues and get America back on track.
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 America
$95,000 per U.S. citizen – Leviticus 25 Plan 2026 (41917 downloads )