Is that title unbelievable? Does it make your eyes pop out?
It's not fiction, it's true.
The U.S. government is prepared to lend more than $7.76 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, to rescue the financial system since the credit markets seized up 15 months ago.
So to whom is all of that money going? The Federal Reserve still won't tell!
They have already given $2.8 trillion dollars.
This blog title Shock and Awe took the words right out of my mouth on how incredible this is.
This is taxpayer money!
Barron's is calling this out in Has the Fed Mortgaged America's Future?
IF THE FEDERAL RESERVE BANK WERE A COMMERCIAL LENDER, it would be a candidate for receivership, based on its capital ratios. Bank examiners generally view any lender with a ratio below 2% to be dangerously undercapitalized. The Fed's current capital ratio, or capital as a percentage of assets, is 1.9%.
and notes if inflation hits later, by these actions it will be near impossible to fight.