Skip to content

Bankers Get $4 Trillion Gift

Just as I have finished a series about the moral hazards introduced into the financial system, it turns out that the 1,279 page “Wall Street Reform and Consumer Protection Act” of 2009 contains a clause that says the Federal Reserve has the right to provide as much as $4 trillion in emergency funding the next time Wall Street crashes.  That is twice the amount that was used during this last bailout.  The bill also makes sure to state that the government can back firms’ debts during a crisis.

The bill was passed by the house earlier this month, so I suggest we all get as comfortable as we can with the details.

Posted in Conspiracy, Politics.

Tagged with , , , , .

Copyright © 2009-2013 SurlyTrader DISCLAIMER The commentary on this blog is not meant to be taken as an investment advice. The author is not a registered investment adviser. There is no substitute for your own due diligence. Please be aware that investing is inherently a risky business and if you chose to follow any of the advice on this site, then you are accepting the risks associated with that investment. The Author may have also taken positions in the stocks or investments that are being discussed and the author may change his position at any time without warning.

Yellow Pages for USA and Canada SurlyTrader - Blogged