Ratigan: The Fed Bought the Big Banks’ Garbage for $14 Trillion

Ratigan: The Fed Bought the Big Banks’ Garbage for $14 Trillion

In the following video recorded in the wake of the financial crisis, Morning Meeting host Dylan Ratigan explained that the Fed bought the Big Banks’ toxic loans for $14 trillion of the American people’s money, an enormous debt that will have to be paid back in the form of inflation and/or taxes. Furthermore, he noted, the Fed stubbornly refused to reveal exactly what they paid for.

Ratigan highlighted two important points: 1) The Fed not only enables massive malinvestment that yields asset bubbles that ultimately pop and crash the economy; it directly transfers wealth from the common American to the Big Banks. 2) The Fed is an opaque institution that operates largely without oversight.

Guest former New York Governor and Wall Street watchdog Eliot Spitzer also made a great point about the bubble/burst paradigm of the Greenspan and Bernanke Feds. Unfortunately, many conservatives automatically dismiss everything that Spitzer says–even when he’s correct, such as in this case–because he’s a Democrat who was caught up in a sex scandal. (Many liberals would undoubtedly do the same if he were a Republican.) And that’s one reason why the Fed has been able to undermine the American economy for so many years: Even though limiting the Fed’s influence on the economy is one of the most important causes of our time–a truly bipartisan cause–, so many Americans have been distracted by partisan politics that the Fed has been able to continue its destructive monetary policies largely beyond reproach. We at Solidus.Center are hoping to help change that.

Seth Mason, Charleston SC

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Seth Mason is the Founder and Executive Director of Solidus.Center. Additionally, he's the owner of Lowcountry Vistas (LowcountryVistas.com), a landscape design and installation business that serves the greater Charleston, SC area and Charleston Spanish Tutor (CharlestonSpanishTutor.com), a Charleston-based tutoring service.
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