Would it surprise you to know that several Canadian lending institutes were also there with their hands out?
Obvious beneficiaries such as Citigroup and Goldman Sachs Group Inc. are on the list released Wednesday, but so are a surprising number of international banks, including all of Canada’s biggest lenders, which borrowed $111-billion (U.S.) through their U.S. divisions.A list of companies released yesterday, gives face to the culprits.
Instead of creating jobs and helping citizens cope with the devastating losses of their incomes and homes, these fat cats bellied up to the bar and bought their house a round.
McDonald’s, General Electric and Harley-Davidson also turned to the Fed when no one else would buy their commercial paper. Hedge fund managers John Paulson and Julian Robertson put up toxic assets as collateral for Fed loans that they and similar investors used to buy sounder asset-backed securities.
The data released Wednesday details loans the U.S. central bank gave through 11 separate programs created to stave off an economic depression. The transactions date from December 2007 through July 2010. The Fed’s disclosure of 21,000 different transactions will change the way the financial crisis is interpreted, providing layers of context that will help economists and academics better understand the crisis.
...the reminder that big corporations, international banks, billionaire investors and foreign central banks were among the recipients of the Fed’s lending will stir up political animosity that already is running high because of the policy maker’s recent decision to create $600-billion to buy financial assets in a bid to stimulate the flagging economy. “This will not be good for the Fed politically,” said Douglas Elliot, a finance expert at the Brookings Institution in Washington and a former investment banker. “Everybody hates bankers right now and this shows the Fed helping bankers.”Public funds were used to stick it to the public.
And Stephen Harper plans to go ahead with further tax cuts for the wealthy, while promising the rest of us an austerity budget. This is criminal.
We need to tell the corporate welfare bums to leave our money alone. If they can't run their businesses better than that, they need to find a real job. I hear McDonald's might be hiring.