Fed makes big profit from bailout...

[Peacetrain]

Fed makes big profit from bailout

http://money.cnn.com/2010/04/22/news/economy/federal_reserve_banks/index.htm?postversion=2010042212


NEW YORK (CNNMoney.com) -- The Federal Reserve banks that form the backbone of the nation's financial system transferred an extra-large payload to the U.S. Treasury last year, as they reaped interest from Wall Street bailouts.

The 12 Federal Reserve banks reported that their 2009 income totaled $53.4 billion, a jump of $17.9 billion, or one-third, from the year before.

The board of governors of the Federal Reserve system attributed this increase to a surge in the holding of mortgage-backed securities to prop up the devastated housing market.

The banks said they transferred most of this money, $47.4 billion, to the U.S. Treasury in 2009, an increase of 50%, or $15.7 billion, from the amount they transferred in 2008.

[Cha]

1. That can't be bad.

[Brother Buzz]

2. That can't be socialism

I believe that takes the wind out of a lot of sails. :rofl:

[Cha]

3. Oh yes, there's a few

boats adrift.

[BlooInBloo]

4. Be serious. You know better than that....

Conservatives will swear up and down that it's proof of socialism.

Self-proclaimed "true progressives" will swear up and down that it's proof of Obama's betrayal and he's just a corporatist tool.

[Cha]

5. Both stuck in

ruts.

[Jeff In Milwaukee]

7. Here's the funny thing...

and I think it points to the possibility -- the possibility mind you -- that the Republicans might be something close to hypocritical.

When the bailout was announced, the conservatives quite nearly shat themselves because the government was "taking over the private sector" and that "socialism had come to America" and etc. and etc.

Yet when conservatives talk about privatizing Social Security, isn't one of those features the idea that the Social Security Trust Fund would be invested in the stock market so we could get those juicy returns on investment (except during 2007 - 2008, when Grandma would be reduced to turning tricks to make her Medicare Part D co-payments).

Why is a temporary loan to a private company the harbinger of the Apocalypse and a permanent equity position by the Social Security Trust Fund considered a smart, conservative policy position?

[girl gone mad]

6. Things sure look great with that pretend and extend accounting.

Get back to us when the writedowns come due.

:rofl:

[Llewlladdwr]

8. Indeed.

"The board of governors of the Federal Reserve system attributed this increase to a surge in the holding of mortgage-backed securities to prop up the devastated housing market."

So in other words, The Federal Reserve system now holds all the bad paper the Government agreed to back. And this is good how?

[kentuck]

9. How do we know??

I thought all their numbers were secret? We're supposed to just take their word for it?