With morons like this controlling our money its no wonder were in a mess, not to mention the guy is acting shady/guilty as hell. http://www.youtube.com/watch?v=n0NYBTkE1yQ
Shit! That's just plain robbing the treasury for a few people to make all the mnoney for themselves. There's no accounting as to where that money actually goes. Looks like the new regime has a way of really screwing the American people. So many sheep to shear, no one does nothing about it either. Please Register or Log in to view the hidden image! :shrug:
Given that foreign currencies have been performing pretty well against the dollar, depending on when these swaps were entered into and executed, we likely made money on them. A swap is exactly what it sounds like, you have something I want, and I have something you want, so we trade oen for the other. I am not sure why Bernanke would have followed which banks ultimately got the money any more than I follow which employees get paid with the money I "swap" for food at the grocery store. At that point, it's the grocery store's money. In this case Bernanke had to trust foreign central banks to use the cash in a way that would reduce interest rate volatility, but I am not sure that is such a big risk, if the banks re in allied nations. For what it's worth, this swap is nothing like the AIG swaps, which were credit default swaps. There the "swap" is thtat Lender A does not like the credit risk of his borrower, to the swap counterparty takes that credit risk, and Lender A takes the risk that the counterparty will default (in other words you swap your credit rating for the Borrower's on the loan you are now agreeing to pay on). While there are uses even for that, it is a much more complicated instrument, and is in effect a loan guaranty given for a fee.
You are absoutley correct. There is no need to track which banks the central banks give the money too. It is not relevant to the Federal Reserve. As pointed out this is and has been done routinely. God forbid that congress should have to approve of these swaps the economy would come down around our heads. And these demagogues would suddenly be on "Who me, I never said that!" side of the story. By the way, you owe a lot to that "moron". He saved the nation and the world from an economic meltdown the likes that have not been seen since The Great Depression. I shudder to think what would have happened had he and others not intervened as they did to stabilize the financial systems. You would have awakened and not been able to get cash...not cash your pay check...not get gasoline...not get food. It would have been a wonderful world for the right wingers. The world would have been in dire shape.
