The Rich get Richer (and Bigger) thanks to the Fed

I first wrote about this in August--http://www.johnmpoole.com/2011/08/federal-reserve-has-some-explaining-to.html . Now Bloomberg is reporting even more--

Secret Fed Loans Gave Banks Undisclosed $13B - Bloomberg: "The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue. . . . .details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger."

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