We Didn't Know About the Fed's $7.7 Trillion Loans To Wall St.

[Dover]

Source: Forbes

"What you see is all there is. We don't react to things we don't know about."

This remarkable but common sense insight is a major theme of economist Daniel Kahneman's new book, "Thinking, Fast and Slow, " just published and already on the best-seller list.

We did not know that the Fed has spent the mind-boggling total of $7.7 trillion in loans to many of the key financial institutions in the world during the 2008 meltdown; including $1.2 trillion in a single day, December 5th, 2008-- after other costly steps had been taken to put capital in the major banks, Citigroup, Bank of America, Goldman Sachs, Morgan Stanley-- and a host of European banks as well.

Had we known the extent of the money being lent through the Fed open market window-- even though the money had collateral behind it-- would we have been more frightened-- or more secure in our temperament, and so willing to risk our money as well.? I reckon I would have been more frightened, and I'm glad I didn't know.




Read more: http://news.yahoo.com/didnt-know-feds-7-7-trillion-232402914.html

[The Second Stone]

1. Rumors afterwards were $10 trillion

so in the ballpark.

Can I have a 1 billion loan overnight?

[DCKit]

2. Maybe not, but we sure as hell suspected it. nt