Bank analyst Dick Bove believes the result of what Ben Bernanke did was magnificent when the Fed provided $7.77 trillion in secret loans during the financial crisis. Congress would never have given its approval to carry out such an operation, so Bove thinks Bernanke did what he had to do and the Fed was right, saving us from depression and collapse and generating a huge profit for the Fed and the Treasury.
But, he says “you can’t trust ‘em.”
{ 6 comments }
South Park did a lovely send up of modern day bankers.
And don’t worry about all of this money in the reservers of banks. The Fed in its brilliance will has an exit strategy.
Kinda like the “exit strategy” of a Super Villain in a James Bond flick?
Well, that secret economic action of Ben Bernanke is quite acceptable to some people indeed and that includes me as well.
Yeah, he did what he had to do to make sure the US economy wouldn’t face much economic pains.
The Great Depression in the US was also due to lack of money with the banks, and that was an awful time for the US banks, the bank runs were underway, and all most all were helpless including the Fed due to a regulation that restricted the financial aid! That was quite usual act.
Ben Bernanke trusted the banks but it is really hard to keep the trust in this fast changing global economy.
Hard times ahead !
These spam bots are getting worse and worse
Be careful with the $7.77 trillion number. It is from Bloomberg and what they did was total all loans without considering any payback or rollover. For example if there was a $100 billion loan that was paid back and then another $100 billion dollar loang this was considered $200 billion in their number but in fact they were lending the same $100 billion twice.
Now that doesn’t make what the FED is doing right, but the $7.77 trillion number is bogus, significantly inflated.
Comments on this entry are closed.