Home | Hegemony | Archives | Blogroll | Resume | Links | RSS Feed | subscribe by email    

Flagrancy

to Reason

 

blog roll


    it'll be easier to stab you all in the back if you close ranks in front of me, thanks..., 2011-07-25 00:59:36 | Main | bush's third term..., 2011-07-28 15:07:03

    The "$16 Trillion Dollar Secret Slush Fund":

    All these news items and panicked blogs about the Fed loaning out a super-secret $16 trillion during the financial crisis are based on Table 8 of the GAO audit, page 131, which adds up the Fed's short term emergency lending windows into a vaguely meaningless number:

    Table 8 aggregates total dollar transaction amounts by adding the total dollar amount of all loans but does not adjust these amounts to reflect differences across programs in the 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.

    Business Insider is out to lunch and thinks that if I borrow $1 from you every morning and pay back $1 every night for a week that you've added $7 to the monetary base. Using this number makes the actual amount of welfare the Fed and Treasury dished out to Wall Street sound like a pittance, and they can turn around and talk about how they've paid it all back minus a rounding error.


:: posted by buermann @ 2011-07-25 14:57:22 CST | link





    go ahead, express that vague notion
    Name:
    Email:
    Homepage:
    Comment

    your turing test:

journals, notes,
and
other curmudgeonry

Enforcing
American
Hegemony
- A Timeline -

Oil for Nothing:
US Holds On Humanitarian Supplies
Iraq: 1997-2001


the good book
and other cultural
artifacts


The Autobiography
of
Mother Jones


Contact Info:
buermann[at]
flagrancy[dot]net



"Any man who is not a radical at 20 has no heart. A man who is not a cynic at 50 has no mind."