They've been recapitalizing the Big Zombie Banks on the backs of the Taypayer

[PaleoMan]

Disgusting. Not anything shocking for those who have been following this saga, but it's good to see this story finally out in the open.

http://www.huffingtonpost.com/2011/04/26/fed-lending-helped-wall-street_n_853884.html

"Why wasn't the Fed providing these same sweetheart deals to the American people?" asked Warren Gunnels, senior policy adviser to Sanders. "The Fed was practicing socialism for the rich, powerful and the connected, while the federal government was promoting rugged individualism to everyone else."

Lending, however, decreased, according to Fed and Federal Deposit Insurance Corporation data. Mortgage rates dropped, but mortgages were harder to come by. Credit card lines were slashed. Loans were called in. New financing plunged. In 2009, outstanding credit to U.S. households declined by $234.5 billion. For non-corporate businesses, credit plunged $296.1 billion, Fed data show.

Sanders said the spread between firms' borrowing rates and their lending rates to Uncle Sam amounted to "free money." For Bank of America during the third quarter of 2009, the spread was nearly 3 percent.

[ironfist]

I for one, am going to stop paying my Tays

[Kevin Seitzer]

Did Bernie Brewer make it over from the old board? I always enjoyed reading his insights on the banking system.

[PaleoMan]

Bernank to take the podium in 10 minutes.

[PaleoMan]

This man is a tool. Someone pull him from the podium. I think they rigged a C4 vest to his chest so he can't tell the truth. Admit that the mass exportation of our inflation is being "priced in" by the OPEC nations, on the average price of a barrell of oil. The Arabs are not dimwitted sand people. That's the dark secret withheld from the simple mundanes, but none of these sycophants in the press want to go there.

[chancellor]

Marc Labonte stole my line, that bastage.

IMO, the article's only half right - certainly banks benefitted from cheap credit and cashed that elsewhere at minimal risk. But let's face it, the public needed credit slashed. On the whole, when credit was dirt cheap for the public, an incredible number simply crapped the bed with the money, an issue I believe you've spoke at length previously.