Citi now becomes the latest one in the corporate breadline that is part of the now $7.4 Trillion dollar Federal Reserve giveaway program. Whew... that was a close one too, because heaven knows we can't have Citibank employees digging ditches for the roads that "The Leader" has planned in his "FDR style recovery package" that we will soon hear much about.
Here is a sobering statement:
The U.S. government is prepared to lend more than $7.4 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.The article by Bloomberg went on to say:
The unprecedented pledge of funds includes $2.8 trillion already tapped by financial institutions in the biggest response to an economic emergency since the New Deal of the 1930s, according to data compiled by Bloomberg. The commitment dwarfs the only plan approved by lawmakers, the Treasury Department’s $700 billion Troubled Asset Relief Program. Federal Reserve lending last week was 1,900 times the weekly average for the three years before the crisis.So here is the bottom-line - The Federal Reserve has a blank check (based on the sweeping powers they were given in the bailout legislation passed by Congress) ... and they are giving out money as they see fit without transparency ... the CEO's parade before them hoping to be chosen for a handout, a loan, or whatever money they can get.
When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. Now, as regulators commit far more money while refusing to disclose loan recipients or reveal the collateral they are taking in return, some Congress members are calling for the Fed to be reined in.
Whatever happened to strong self-reliant American corporations who can succeed on their own merits?
They probably went the way of strong self-reliant Americans.
This is not good.
Not good at all.