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speedybure (< 20)

Tarp Funds Paid Back: Just a drop in the bucket

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June 09, 2009 – Comments (2)


The 700 billion in TARP relief, which the majority has now been paid back, is so miniscule, it is hardly worth mentioninig. I personally though they would have been paid back relatively quickly, which was obviously not the case. The federal reserve injected over 800 billion into the banking system (which i believed and still do it was solely to cover future loans losses).

Remember FRB (fractional reserve banking) allows th private banking system then to make deposits with capital back with the fed, and in the process creating 7.2 trillion of currency. That being said, the repayment of TARP is coming extremely late, 6 months to be exact. That just shows how truly bad things are underneath the surface covered by talking heads on TV and the lies coming from every branch of government and from the banking system itself.  

WHATS EVEN WORSE....  In my opinion either an additional 400-500 of reserve will need to be plowed into the system (the total thus being being 1.2-1.3 trillion or 11.08 - 11.70 trillion in currnecy created via FRB. I come to this conclusion based solely on the assumption, commercial real esate will be the next show to drop. (The higher capitalization's obvisouly prolongs this outcome realative to residential housing. But some degree of a commericial real estate fall out is just a matter of time. 

2 Comments – Post Your Own

#1) On June 09, 2009 at 1:56 PM, cbwang888 (25.90) wrote:

Scam is the only way some banks can survive in this credit crisis. JPM and GS among them.

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#2) On June 09, 2009 at 3:59 PM, speedybure (< 20) wrote:

That is true, thus far, but I don't even think MS and GS will be around in a year. I think they will be bought or go under..

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