Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01%

The IRS should tax the banks the fair market value of these loans.
0.01% is a gift and well below fair market value.
All recipients of bail outs should be required to report as income the difference between prime interest rate and the rate given to them by the fed.

 

Yeah, but they did say that $80bn was the total amount lent over the whole period, rather than monthly. At any rate, my point is that all this noise is obscuring the main issue, which, in my mind, is TBTF. That's the one thing I do blame the Fed for, although Hoenig and a few others have been saying the right things. I hope he gets his way.

 

Or Dominic Strauss Kahn on the run after his liason with a maid

 

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And you wonder why I am leaving the country with this nonsense going on. I don't even care about the US tax payer anymore. The quality of service they are getting for their money is pathetic. Let the system fall. I don't want to be here when it happens.

Akuma

 

The bloomberg article didn't pass the smell test, sometimes one gets confuesed but looks like we have a bit more insight on link.

"Secret Fed loans" that were not so secret.


http://www.zerohedge.com/article/secret-fed-loans-were-not-so-secret

 

It is not just that they are getting tens of millions worth of a direct handouts/theft in the form of a lower interest rate. The other point is that they are getting any money at all. So these banks overleverage, crash the system, you have temporary deflation and.... They just run to the Fed and get hundreds of billions in loans at under 1% interest. Then they turn around and lend it at 5% with practically guaranteed profit since all these billions are sure to create high inflation. Rinse and repeat - yet people still defend this scheme.

 

There's a thing called imputed interest but that only applies to sorry saps like you and I. The banks, of course, are above the law and outside the reach of the IRS. The US is turning into exactly what the revolutionary war was faught to escape.

 

Yes, big banks are above the law.

The gov't needs them to be above the law.

 

Some of what you say makes sense, while some doesn't. At any rate pls feel free to offer a viable alternative to the way the system is organised now. I have offered my views a number of times.