Federal Reserve holding over $2 trillion in the Darkest Balance Sheet in Financial History

[Subdivisions]

The U.S. Treasury and the Federal Reserve have arguably two of the least transparent balance sheets known to humankind. This wouldn’t be such a big issue if the amount of money funneled into these organizations was small. That is not the case. The Federal Reserve since October of 2008 has held on its balance sheet over $2 trillion in reserve bank credit and also, Federal Reserve Holdings of U.S. Treasuries. This of course is the biggest bait in switch in history because in exchange for U.S. Treasuries, banks can offload practically any collateral (i.e., mortgages, auto loans, credit card loans, etc). The U.S. Treasury and Federal Reserve are creating the biggest put option in the history of the world and the American taxpayer stands to lose big.

...

http://www.mybudget360.com/us-treasury-and-federal-reserve-federal-reserve-holding-over-2-trillion-in-the-darkest-balance-sheet-in-financial-history/



I remember when there were fierce debates on whether or not NASA should be budgeted for a mere $1 Billion just 5 years ago. Now we're pissing money without any debate at all. In other words, without representation.

[Thrill]

1. In Congress wanted to know. They would do something about it.

.

[ThirdWorldJohn]

2. There's 9 Tril the Fed can't account for - link below

http://www.dailymarkets.com/videos/2009/05/14/federal-reserve-cannot-account-for-9-trillion/

[MannyGoldstein]

3. Check Larry Summers' Garage

$50 says it's there.

[Amonester]

4. 2,000,000,000,000 divided by 330,000,000 citizens gives:

$6,060.61 for each and every woman, man, and child in the country.

Imagine how fast we'd get out of this depression if everybody could spend that amount on goods & services of their choice...

[reggie the dog]

8. yeah, but that would be a handout

and we don't want to be socialist now do we

[Skink]

5. How much would that be in Pesos?

[Wednesdays]

6. K&R

:kick:

[TWiley]

7. The program seems to be working Buckey.

May 24 (Bloomberg) -- Orders for durable goods and home sales probably rose in April as the worst U.S. recession in at least half a century started to loosen its grip, economists said before reports this week.

Bookings for goods meant to last several years increased 0.4 percent, the second gain in three months, according to the median forecast in a Bloomberg News survey ahead of a Commerce Department report May 28. Combined sales of new and existing homes likely advanced to a 5.02 million annual rate from a 4.93 million pace in March, other figures may show.

Stabilization in housing and manufacturing, the two areas suffering the biggest contractions, will help ease the economic slump. Still, gains will be difficult to sustain in coming months as banks remain hesitant to lend and unemployment climbs, underscoring projections from Federal Reserve officials and private economists that a recovery will be subdued.

“Evidence that the 16-month recession is coming to an end continues to build,” said David Resler, chief economist at Nomura Securities International Inc. in New York. “Home sales and building activity seem to be stabilizing and manufacturing surveys point to smaller production cuts and smaller job losses.”

Story here: http://www.bloomberg.com/apps/news?pid=20601087&sid=aaLCktFTN9XE&refer=home

Your fears are soooooo 2008. The plan is starting to work. Only 6% of the stimulus money has been spent so far.

[AllentownJake]

10. Yes my fears are so 2008

"Stabilization in housing and manufacturing, the two areas suffering the biggest contractions, will help ease the economic slump. Still, gains will be difficult to sustain in coming months as banks remain hesitant to lend and unemployment climbs, underscoring projections from Federal Reserve officials and private economists that a recovery will be subdued."

I wonder how California going bankrupt is going to effect the economy, or all the kids not going to college in the next 4 years because state tuition is going to be more expensive due to the cut in state funding in all states.

I wonder how the reduction in our state's social safety net is going to effect the economy next year.

Never mind those of us who want to know what the Wizard of Fed and his puppy Geithner are doing. Bankers always have our interest at heart!

[girl gone mad]

9. Sign the Federal Reserve Transparency Act petition.

Over 4,000 people have already endorsed HR 1207, including Naomi Klein, James K. Galbraith, Dean Baker, William K. Black and Glenn Greenwald.

You can add your name to the petition here:

http://action.firedoglake.com/page/s/Fed1207

[truedelphi]

11. People who defend Geithner and Bernanke state that we taxpayers will not be paying "Taxes" due to

Bernanke's creation of money out of thin air.

This is patently absurd. When a nation's money supply is inflated, the prices of consumer goods are driven upwards. There has never been a time in human history when that was not true.

So the Taxpayers end up with a tax (Inflated cost of goods, devalued dollar) that they don't get to vote on, and it punishes the middle and lower classes the most.

Damn. Whoever insisted that economics NOT BE TAUGHT has really dumbed down this nation.

Thanks fo rthis OP. K & R.