The Fed has been a financial empath, it has taken on other people's financial pain and put it on its own books. But all of this shuffling of losses--perhaps not coincidentally from more to less transparent forms--has obscured the fact that when the shuffling stops it's the taxpayers who are the ultimate empaths, whether they volunteered or not. The taxpayers deserve more than a shell game, they deserve a proper financial accounting which explains where the losses came from and how much ended up on different books, including those of the Federal Reserve.
An interesting question from Alex Tabarrok, I doubt a clear answer will be available any time soon.
2 comments:
Yup.
TARP was and is NOT 'profitable,' because the toxics are still sitting on FRB's books.
Dad,
That was the whole point. Put bad, government-created loans where they can never be questioned and the cost can merely be monetized.
It is also the whole point of central banking, along with inflation.
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