Members of Congress, taxpayers and investors urged the Federal Reserve to provide details of almost $2 trillion in emergency loans and the collateral it has accepted to protect against losses.Yah, you thought tax payers were only on the hook for $700B, plus some minor bail-outs. You forgot about all the loans the government said we'd give to financial institutions before the $700B bailout was announced. We're now on the hook for nearly $2 TRILLION. And we have no way of knowing what we've gotten for our money.
Last week I was sitting with two guys I work with and they said something about Obama moving us toward socialism and redistributing our wealth. I was stunned and tongue-tied. I've since then figured out what I would (should) have said - story of my life. Anyway, this is a clear and direct example of how our government is distributing the wealth upward.
Transparency is key. Perhaps we do need to lend $2T, we just need to know where it is and what we got for it. Kind of like all the money that we've thrown at the Iraq war - we've lost money there and nobody knows where it has gone.
Maybe it's the cynic in me, but I doubt any of the money the government has lost is now lining the pockets of Joe the plumber, or any other middle-class, salt of the earth people. And you know it hasn't gone to any poor folks.