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econoclast

(543 posts)

20. If you believe this story, perhaps you should

Thu Jun 14, 2012, 06:41 PM

Jun 2012

Apologize to Ron Paul ...

But seriously , I was curious to see just how the real data was tortured into aggregating to 4 trillion dollars

Found it in footnote of the original GAO report... To wit

If an institution borrowed 10 billion overnight, but each day, for thirty days, rolled over that 10 billion dollar loan it shows up in the aggregate "aggregate borrowing" 300 billion dollars. If that same institution borrowed the same 10 billion dollars for the same 30 days but did the initial loan as a 30 day term loan instead, that loan shows up as "aggregate borrowing" of only 10 billion dollars.

Cute!

This 4 trillion dollar figure is one of those "gee whizzz" numbers that has little bearing on what happened in reality, but is designed to elicit a particular response from the reader.

Like saying I have a 150,000 dollar mortgage. I refinanced it twice to get lower rates

According to this logic I borrowed 450,000 dollars.

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Sanders Releases Explosive Bailout List [View all] abelenkpe Jun 2012 OP

REC REC REC....KICK KICK KICK DearAbby Jun 2012 #1

Yet again, a story created by the failure to understand that a loan is not a gift. TheWraith Jun 2012 #2

Your incivility, condescension and patronizing attitude are coalition_unwilling Jun 2012 #6

Amazing isn't it? whatchamacallit Jun 2012 #18

How is it 'incivil' to point out that a loan is not the same as a gift? randome Jun 2012 #29

The little people off the streets sure can't get an interest rate like that Autumn Jun 2012 #32

There are more than 300 million people in the U.S. randome Jun 2012 #33

The banks could have been charged a higher interest rate, Autumn Jun 2012 #35

Yes, they sat on a lot of the money.. girl gone mad Jun 2012 #40

I'm sure you're right that some of them sat on the money. randome Jun 2012 #42

The government's responsibility should be to handle a crisis responsibly, not just to act quickly. girl gone mad Jun 2012 #54

What girl gone mad said! +10000 Fantastic Anarchist Jun 2012 #100

I think you need to read up on what the banks did 2pooped2pop Jun 2012 #84

Small Busniess Loans bahrbearian Jun 2012 #44

Yeah, that sounds good. randome Jun 2012 #46

They could have been given Jobs by small business's. That is were most jobs are created. bahrbearian Jun 2012 #47

Bush Jr didn't seem to have any trouble when he handed out $400 checks. nashville_brook Jun 2012 #52

Yes, that's what they said in Europe. sabrina 1 Jun 2012 #55

Yep and both Issa and Kucinich mentioned this fact repeatedly as truedelphi Jun 2012 #63

How about loaning it to cities and towns and states zeemike Jun 2012 #66

I think all of you raise good points. randome Jun 2012 #82

get something done? 2pooped2pop Jun 2012 #83

spot on - if someone "loans" you 10 million dollars for no interest for as long as you want it... nashville_brook Jun 2012 #51

Actually most bought US Treasury Notes Jake2413 Jun 2012 #61

precisely, thank you! nashville_brook Jun 2012 #68

And then we DU'ers have to overlook the fact that the truedelphi Jun 2012 #60

why does that name sound familiar....hmmmm chknltl Jun 2012 #77

It would be nice to know 2pooped2pop Jun 2012 #85

Here, should you wish to investigate further: chknltl Jun 2012 #113

The loan isn't the gift. The way-below-market-rate interest on the loan is the gift. (nt) jeff47 Jun 2012 #7

+1000 Xedniw Jun 2012 #34

A loan is only a loan when there is specific pay back schedule Jake2413 Jun 2012 #59

Wrong. girl gone mad Jun 2012 #9

I don't think your response "treed" truedelphi Jun 2012 #58

A loan at 0% interest is socialism at its finest. joshcryer Jun 2012 #81

A MASSIVE "loan" at 0% or near 0%... bvar22 Jun 2012 #96

When you give someone an interest-free loan Ruby the Liberal Jun 2012 #10

I totally agree with your observation. Don't you wish we could get free interest loans. southernyankeebelle Jun 2012 #14

... abelenkpe Jun 2012 #13

i'm with you. mopinko Jun 2012 #17

The question is not whether an industrial economy needs a banking system - it does - coalition_unwilling Jun 2012 #19

i find your suggestions absurd. mopinko Jun 2012 #22

Obviously it 'ain't happening,' but you provide coalition_unwilling Jun 2012 #26

the fdic mopinko Jun 2012 #30

The share- and bondholders of the TBTF banks (many of them in the 1%) coalition_unwilling Jun 2012 #31

Your analysis relies on some fairly extreme historical revisions. girl gone mad Jun 2012 #45

thank you for your rational post 2pooped2pop Jun 2012 #87

Well Done. Thank You! bvar22 Jun 2012 #97

Bankers should be basically.. sendero Jun 2012 #65

?????????wtf????????????? 2pooped2pop Jun 2012 #86

The loans made by the Fed were exactly that... cheapdate Jun 2012 #91

You are confusing these loans with the TARP loans nt abelenkpe Jun 2012 #103

I would like a zero interest loan as well.. Bandit Jun 2012 #23

I'd call this a gift taught_me_patience Jun 2012 #24

AKA: "Cash-For-Trash" coalition_unwilling Jun 2012 #27

I wonder why Geithner et al tried to keep it all sabrina 1 Jun 2012 #53

This was not a loan. It was a bailout rustydog Jun 2012 #57

The Nation, Democracy Now, Reuters and more are reporting on this suffragette Jun 2012 #89

A loan can easily be transformed into a gift SOS Jun 2012 #94

What Bernie was reporting was the CONFLICT OF INTEREST between the bankers who got the loans and Dont call me Shirley Jun 2012 #109

Some of these people should be in prison Angry Dragon Jun 2012 #3

Agree. But don't worry if things keep getting worse the little people are going to be in the southernyankeebelle Jun 2012 #16

Yes...but "many more" than "SOME." But, they are HUGE DONORS to Both Parties.... KoKo Jun 2012 #48

if potus gets a 2nd term that might happen leftyohiolib Jun 2012 #92

This kind of insanity just makes you want to bang your head against a wall. AndyA Jun 2012 #4

Are the numbers you quote the amounts loaned or the amounts given? nm rhett o rick Jun 2012 #5

Article says: abelenkpe Jun 2012 #8

Thanks I missed it. It would be good to know how much they actually netted. nm rhett o rick Jun 2012 #56

Wrong place. nm rhett o rick Jun 2012 #37

kick valerief Jun 2012 #11

Every-bloody needs to read this longship Jun 2012 #12

...and an outraged Congress is finally spurred into action!!! librechik Jun 2012 #15

If you believe this story, perhaps you should econoclast Jun 2012 #20

You did borrow $450,000 Angry Dragon Jun 2012 #25

I think not..... econoclast Jun 2012 #28

I am not being bamboozled by Saunders Angry Dragon Jun 2012 #70

Your analogy is imprecise.. girl gone mad Jun 2012 #50

Actually quite precise indeed econoclast Jun 2012 #74

The fact that the Fed.. girl gone mad Jun 2012 #112

The original number was fifteen or sixteen trillions of dollars. truedelphi Jun 2012 #106

Your confidence is misplaced econoclast Jun 2012 #115

Catherine Austin Fitts still stands by the number 12 Trillions of dollars. truedelphi Jun 2012 #116

As I read this Senator jeff Session is on the bonniebgood Jun 2012 #21

Cutting food stamps in Texas was a disaster. DhhD Jun 2012 #69

Welcome to DU. girl gone mad Jun 2012 #71

How seamlessly our representatives have transformed themselves into our "leaders." woo me with science Jun 2012 #88

Required reading for everyone in this country that can read.. Stuart G Jun 2012 #36

That which gets rewarded gets repeated. They'll be back for more. AnotherMcIntosh Jun 2012 #38

OMG LittleGirl Jun 2012 #39

Apparently we must hand deliver this list to all Americans. Our Corporate News Digest won't SleeplessinSoCal Jun 2012 #41

And maybe somebody close to Pres Obama could mention that his truedelphi Jun 2012 #64

Immelt of G.E. (owner of MSNBC, NBC, CNBC) got $16 billion . . . . SleeplessinSoCal Jun 2012 #75

Glad you reminded me of this. truedelphi Jun 2012 #105

Go Bernie! (n/t) a2liberal Jun 2012 #43

Well then........... SammyWinstonJack Jun 2012 #49

Holy facting shite!! malaise Jun 2012 #62

Bernie Sanders stood up and did wimp into a corner. Thinkingabout Jun 2012 #67

And this quote is the best: JDPriestly Jun 2012 #72

Wall St. OWNS all Three Parts of Our Government! solarman350 Jun 2012 #73

I had never seen that sign before - thanks for the chuckle. truedelphi Jun 2012 #117

Is there any doubt left..... Flint Stone Jun 2012 #76

Spam deleted by Violet_Crumble (MIR Team) Marvin33 Jun 2012 #78

Citigroup received over $2.5 trillion liberalla Jun 2012 #79

And then laid off 50,000 workers nt abelenkpe Jun 2012 #101

O and then sharply raised interest rates and canceled lines of credit. nt abelenkpe Jun 2012 #102

bush family related business Dont call me Shirley Jun 2012 #110

Kick and rec Fuddnik Jun 2012 #80

And they say they hate socialism. Fantastic Anarchist Jun 2012 #90

+ 1. n/t truedelphi Jun 2012 #107

It was the Fed's money to loan and their decision to loan it. cheapdate Jun 2012 #93

Taxpayers backstop the Fed. girl gone mad Jun 2012 #111

Greed, corruption, and hubris cheapdate Jun 2012 #114

And now they're all busy buying a presidency for Rmoney. patrice Jun 2012 #95

Paulson with Co-Conspirators bvar22 Jun 2012 #98

F.w.i.w., snot Jun 2012 #99

Rec & Kick Catch2.2 Jun 2012 #104

Bernie is AWESOME! Dont call me Shirley Jun 2012 #108