Sunday, December 25, 2011

the fed's own calculation of it's crisis interval ......" emergency " peak " lines of credit" to the big private hi fi-ers: $6.8 trillion !!!!!

yup
"$6.8 trillion --

"The potential amount the Fed might have lent if

“all eligible program applicants request assistance at once to the maximum permitted under the program guidelines,”

this "according to a July 21, 2009, report by the Treasury Department’s Special Inspector General for the Troubled Asset Relief Program, or TARP."



more numbers:




" $1.5 trillion -- The Fed’s for moment of  peak lending. ..

"$7.77 trillion -- The amount the Fed pledged to rescue the financial industry"

 "Most of the difference between the TARP watchdog’s tally and Bloomberg’s involves one program, TALF. The inspector general attributed its $900 billion capacity to the Treasury, which was guaranteeing some of its lending. Bloomberg grouped TALF with the Fed, which created the program."


"$16 trillion -- The “total transaction amounts” for Fed lending included in a July 21, 2011, study by the Government Accountability Office"

.
"$13 billion -- An estimate of the income that 190 banks could have made from investing the Fed loans they took."
did the fed charge Penalty Rates ???

case for  such is bad !!! looking at these fed loans
one can "see"  a clear net margin
between lending rates
and  borrowing &s transaction costs
but 13 bills ???
chicken feed
the real deal is the immotality lines made availible
they established the de facto socialization of default risk at the core of the banking system
.