HOLY CRAP, THAT’S A LOT

November 20th, 2011

El Presidente Habla Sobre La Paz /The President Speaks About Peace. Josep Renau. Photomontage. 1952.

Apparently Bloomberg is suing the Treasury for full disclosure of the government loans. Possibly because they want a “real” market to right itself?

[UPDATE 6.27.2012 it appears that Bloomberg.com removed the article, or at least the link. It mentioned $7.7 TRILLION in government loans.]

Seems like an accounting orgy going on behind closed doors, but because the crash involves enough publicly recognized companies, they reluctantly have to allow peeks at what they are doing.

Does anyone fully understand what the government is doing right now? Isn’t poneying up that much money a sign of a great crash? or is it that Paulson and Bernake are frantically manipulating numbers and meeting with VIPs to try and stop an inevitable crash?

some quotes I find intriguing:

“The thing that people don’t understand is it’s not how likely that the exposure becomes a reality, but what if it does?” Issa said. “There’s no transparency to it so who’s to say they’re right?”

“Some have asked us to reveal the names of the banks that are borrowing, how much they are borrowing, what collateral they are posting,” Bernanke said Nov. 18 to the House Financial Services Committee. “We think that’s counterproductive.”

“I think it would be extraordinarily unusual if the government did not get that money back and more,” Paulson said.

In the three years before the crisis, such average weekly borrowing by banks was $48 million, according to the central bank. Last week it was $91.5 billion. [what?! doesn’t this that the central bank has to borrow another 91.5 billion from somewhere else? or that they just print another 91 billion and inflate the money supply??]

geez.

. . . . . . . .

It’s also interesting to note that the Attack-Force G, knows that something illegal is going on, but is appearing too afraid to ask questions. Milk Toast.

the Washington Post revealing as part of the bailout, lawmakers changed Tax Code Section 382, which limits the kinds of tax shelters companies can use to—during corporate mergers, created to stop companies who avoid paying taxes by acquiring shell companies valued by the losses on their stocks. And then, going on in the piece, it says congressional aides admitted lawmakers agreed to keep the change hidden to avoid public outrage. Staffers with Senate Finance Committee chair, Max Baucus, a Democrat, reportedly asked that an administration briefing on the tax code change be kept secret. One congressional aide said, “We’re all nervous about saying this was illegal because of our fears about the marketplace. To the extent we want to try to publicly stop this, we’re going to be gumming up some important deals.”

Naomi Klein ~ interview Democracy Now with



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