Posted on 04/03/2008 1:48:16 PM PDT by kiriath_jearim
It doesn’t matter. The Fed has no Constitutional authority to appropriate funds, spent or not. That right is reserved to the US House of Representatives.
What the Fed did is illegal and unconstitutional.
who says we are out of the woods? now they can claim this method for anything they want to do with the economy.
It’s a loan that is backed by the Treasury. That would be would be us, the taxpayers.
All of you need to read this:
http://blogs.wsj.com/economics/2008/04/01/treasury-confirms-mbs-back-bear-loan/?mod=WSJBlog
Here’s the money quote: “Since any profit or loss would affect the annual surplus that the Fed remits to the Treasury from the interest on its $800 billion portfolio of securities and loans, it would ultimately be born by the taxpayer.”
But a loan in any event is not an expenditure.
LOL
Where did you get your law degree?
Really ? You don’t think your bank considers a loan to be an expenditure ? LOL and the money that they hand to you comes from ...
You need to learn some accounting.
When did you get your CPA?
OK cite me the law that says the Fed can use taxpayer funds from the Treasury to prop up private institutions ?
Even during the S & L crisis Congress had to approve the RTC and approve the funds.
Answer my questions first.
You talk big.
This seems pretty basic to me. Our government is supposed to protect our financial infrastructure and prevent financial collapses and panics; that's one of the few things that our government actually should do.
People are getting their undies in a bunch that someone is “getting bailed out”. No not really. Bear Sterns stock holders were decimated, their stock holdings were wiped out.
This move was about preserving our financial system and preventing a catastrophic meltdown. That benefits everyone.
That’s it? That’s all you have?
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