Friday :: Oct 1, 2010

TARP Was Not the Bank Bailout

by paradox

My immense, incredulous dismay with the US journalism corps amazingly grew this morning--even after yet another incredibly rancid evolution from James O’Keefe that even CNN can’t report on--for the New York Times completely blew the bank bailout story, acting as if TARP was all there was to the bailout evolution and that the US taxpayer really wasn’t on the hook for all that much money.

Earth to Jackie Calmes and your incompetent editor: TARP did not bail out the big banks, the Federal Reserve did. After Congress so stupidly authorized $750 billion in the Fall of 2008 Treasury Secretary Paulson simply panicked--probably because $750 billion was not nearly enough to stop the meltdown—and ran to Federal Reserve chairman Bernanke, who secretly authorized the backing of $2 trillion dollars in “tired assets” to our felony crook financial lizards from the limitless coffers of the Federal Reserve.

A very angry Senator Sanders trying to get the truth—openly snubbed by Bernanke at a hearing as if he were a bathroom attendant—accomplished one of the most amazing legislative feats of Obama’s first term and got an audit of the Fed passed for this sickeningly secret and furtive giveaway to crooks. The audit is still compromised, it’s time frame is too limited and the web site listing of all the banks who Benny bailed out won’t be published until December 1, until after the election.

As far as we know, TARP was only ever half utilized, perhaps $400 billion was spent, and not all of it on finance, a sad moniker of our times that GM and the housing Mac’s are now “tired assets.” Most of the small banks and S & L’s that used it have or will pay back the loans.

It’s remarkable and very disturbing how the bank bailout is never accurately reported (the New York Times merely confirms the industry standard this morning), how any TARP story never mentions the vitally important knowledge that TARP did not perform as planned, the Fed did in secret. We’re still awaiting audits on both squirrelly secret institutions in this grossly putrid affair.

Search for Federal Reserve Audit and a huge list of stories appear that it passed 96-0 (Obama opposed it), but just try to find out why it passed 96-0 and only a tiny percentage of the stories tell the truth, most just say it passed. How come? Not for the little people to know.

Only the news and political junkies know the story in the country, and even among us the truth of the bailout is ridiculously limited. How TARP was not used and how that Republican Bernanke bailed out the banks with $2 trillion dollars is just never discussed, a frightening example of grossly abusive government power that everyone seems anxious to always push back in the closet.

[shrugs] The story is grossly damaging to any incumbent remotely associated it, one would think the corporate New York Times would giddily run it every week, but perhaps corporate is the operative paradigm to the mystery on the Fed bailout silence. The story is so immensely damaging to US business and economy confidence crashing historic damage could commence, along with throwing every incumbent out of office, rightfully so. The status quo serves all the players in our political world, and perhaps the tectonic forces of the Fed bailout are so unpredictable no one wants to touch them. Not until after the election, anyway.

The Left Coaster is not so constrained, obviously, and as best as circumstances and the appalling US journalism corps allow the truth of the Fed bailout will be plainly spoken, immediately. Loyalty and fear of berserk incompetent Republicans (the NY Republican governor candidate sent around a “humorous” image of a woman having sex with a horse, oh…my…god!) is one thing, but the United States government is supposed to serve the little people, not big banks—seriously—and I don’t care if Francis was president, if the Fed bailed out the banks for $2 trillion there will be a published web audit and the truth will be spoken about this amazing (that’s one word for it) political and finance evolution.

paradox :: 4:28 AM :: Comments (13) :: Digg It!