Nov 18, 2013
What do McDonalds, GE, Harley Davidson, Verizon have in common with Goldman Sachs, J.P. Morgan Chase, Bank of America, Wells Fargo and other Wall Street fat cats? They all feed at the Fed window taking huge portions of taxpayers’ money as their reward for being tight with the Washington and Wall Street political elites.
To watch the San Diego 6 News TV segment click here: http://www.sandiego6.com/story/kimberly-dvorak-washington-politics-20131117
We are only beginning to understand the massive transfer of public cash to private banks and companies through the Federal Reserve’s preferred lending programs that provided $7.7 trillion dollars of taxpayer money at sub-par rates to the politically connected. Bloomberg News spent millions of dollars to force the U.S. government to turn over FOIAed bailout balance sheets. What they found was numerous back room deals that skipped Congressional permission or scrutiny.
Former high-ranking Federal Reserve Official Andrew Huszar said this on CNBC:
“I think the real issue is that the Fed has expanded its tool kit so dramatically, and really there are some real questions as to how potentially it unwinds, when it unwinds. We saw this past summer there was this announcement of potentially a taper and the markets actually tanked, and after that the Fed backpedaled. What’s going to happen if we go on for months, years longer?”
Huszar continued to voice his concern surrounding the lopsidedness that few banks still control most of America’s assets. “By virtue of reflating the markets, we’ve potentially taken the emphasis out of breaking up what is ultimately a banking cartel in the United States 0.2 percent of banks control 70 percent of assets in this country.”
Huszar went on to apologize to America and said the Fed continues to spin Quantitative Easing (QE) as a tool for helping Main Street. But he now recognizes the program for what it really is a fat cat bailout.
“I can only say: I’m sorry, America,” Huszar wrote in a Wall Street Journal op-ed. “The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.”
As a result, GOP Senator Rand Paul has introduced the “Federal Reserve Transparency Act,” but the bill sits on a shelf in Senate Majority Leader Harry Reid’s office. Paul has said he will place a hold on all political appointees until Senator Reid allows a floor vote.
Email Kimberly: Kimberly.email@example.com
Link to story on San Diego 6 News: http://www.sandiego6.com/story/Kimberly_Dvorak-20130915
Past breaking news story: http://www.examiner.com/article/did-cia-and-state-department-run-illegal-arms-trafficking-benghazi-1
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