Fed Prefers Wall Street to Main Street with $1.2 Trillion in "Secret Loans"

According to Derek Thompson of The Atlantic:

Bloomberg reporters Bradley Keoun and Phil Kuntz catalog the Fed's $1.2 trillion in "secret loans" to banks, including Bank of America, JPMorgan, and Goldman Sachs.... The Fed's secret bailout comes out to the same amount US homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The progressive take on this story will be that the Fed has preferenced Wall Street over Main Street by using its exceptional authority to extend trillions in loans to banks without offering similar guarantees to underwater home owners.

Let's face it, bankers watch out for other bankers...

Source: Thompson, D (2011, August 22), The Fed's 'Secret' $1.2 Trillion Bailout of Wall Street, The Atlantic.

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