Quote:
Originally Posted by ZeroJunk
No, I just wanted you to read the part about how much the Federal Reserve propped up the banks far in excess of TARP.
You shot the messenger, but you can find the same in Forbes etc.
I assumed from Daily Koss you might actually take a look at it.
$29 trillion
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29 Trillion is wrong. Going to the source linked-to in your link takes us to GAO report here:
https://www.scribd.com/doc/60553686/...outer_page_144
There we find two tables, table 8 and table 9, that sum up emergency borrowing from the Fed by banks. The text above table 8 explains the difference between the two tables:
Quote:
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Table 8 aggregates total dollar transaction amounts by adding the total dollar amount of all loans butdoes not adjust these amounts to reflect differences across programs inthe term over which loans were outstanding. For example, an overnight PDCF loan of $10 billion that was renewed daily at the same level for 30 business days would result in an aggregate amount borrowed of $300 billion although the institution, in effect, borrowed only $10 billion over 30 days. In contrast, a TAF loan of $10 billion extended over a 1-month period would appear as $10 billion. As a result, the total transaction amounts shown in table 8 for PDCF are not directly comparable to the total transaction amounts shown for TAF and other programs that made loans for periods longer than overnight.
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In other words, if a bank borrowed 10 billion overnight, and then rolled the loan over for 30 total days, table 8 shows the total borrowed as 300 billion. Table 9 adjusts that to $10 billion. That's why table 8 totals $16.1 trillion, and table 9 totals $1.1 trillion.
Tables show 'top 20 borrowers,' I'll assume without digging further that
the 29 trillion figure is the 'table 8' type total for all borrowers.
I imagine there are uses for the table 8 figures in analysis, but a valid use would NOT be claiming the inflated figures in it represent how much money the Feds came up with in 'emergency assistance' for the banks.
And all this was borrowing, not giveaways. You understood that, right?