Remember that little $700 billion bailout two months ago that taxpayers were furious about? Would you believe that number has increased to $2 TRILLION. So where is all this money going to, who is it going to, and what is it being used for? Well, that seems to be the question of the day. The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans.
Fed Chairman Bernanke and Treasury Secretary Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Now, two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return Bloomberg says.
Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.
Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an email seeking comment.
Also, in usual fashion, Obama's people, specifically Jason Furman, Obama's economic advisor, didn't respond to an email or a phone call seeking comment, as if that is a surprise. However, in a Sept. 22 campaign speech, Obama promised to "make our government open and transparent sot hat anyone can ensure that our business is the people's business." Let's see if Obama's agenda has changed, just like half of his Change.Gov website in the past few days. Or is Obama going to be like the rest of all the politicians in history who promises steak and serves stale bread instead?
What kind of country have we become that many, many taxpayers were against the bailout in the first place, yet their representatives in Congress voted for it, and now finding out that the number has gone from $700 billion to $2 trillion, and we the taxpayers as funders for the bailout, can't find out how it's being used? Do you pay a bill without knowing what it's for? Well, I guess that's what the Federal Reserve wants us to do for their bailout party. Kudos to Bloomberg!