Friday, December 2, 2011
Granted our financial system has been and continues to be in serious disarray after the financial crisis of 2008 but I was astounded to learn that the FED lent out $7.7 trillion(yes with a t) in secret loans to banks since the financial crisis. The Fed essentially loaned money at a 0.01% interest rate to banks to help solidify liquidity in the financial system. To make matters worse, banks have profited off this never ending cash supply by buying U.S. treasury bills at a higher interest rate. Some experts estimate that banks have made as much as 30 billion dollars of these deals. I am just astounded that no one has been held accountable for these types of lending practices. No Wall Street executive has been punished and forgive me for sounding like an Occupier but that is completely reprehensible...thoughts? And I would absolutely love it if someone tells me I am misinterpreting this story/don't understand the whole issue. I am appalled and I need a pick-me-up haha. Not the greatest source but here is Jon Stewart on this news.