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Wall Street got $1.2 trillion and all I got was this lousy recession…

From this Bloomberg piece:

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money…

however, don’t dismay, we made money on the deal:

The Fed has said it had “no credit losses” on any of the emergency programs, and a report by Federal Reserve Bank of New York staffers in February said the central bank netted $13 billion in interest and fee income from the programs from August 2007 through December 2009.

But wait, let me get out my calculator…

($13,000,000,000 / $1,200,000,000,000) x 100 = 1.08%

That seems like pretty generous terms, and we don’t even know the length of the loans.

Basically free money.

So let me re-quote the first quote adding more of the included text:

Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages [emphasis added].

I wonder how many Americans could have stayed afloat if that 1.08% interest rate had been passed down to them, yet have been subsequently labeled “deadbeats” who deserved to lose their homes.

Funny how a guy legitimately trying to pay off a lousy $120k on a home can be a deadbeat, but someone who needs, say $25 billion is an “innovative entrepreneur”.

Ah, but it’s a different world for our Galtian overlords.

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