Tuesday, April 8, 2008
More Corporate Welfare
Time magazine reports that the Federal Reserve is loaning $50 million to "cash-strapped banks." Since December 2007, the Fed has "pumped $310 billion in short-term loans into the nation's banking system." According to the Asia Times this scheme called "the New Term Auction Facility (TAF) has allowed large banks to borrow massive amounts of cash against collateral that can't be sold for close to face value."