This $819 billion was not funded by taxes; it was a not a matter of spending by the US government. Instead, it was plain and simply the creation of money on a fantastic scale to get Wall Street and the global banking system out of the existential risk they were facing. A flood of newly created money was loaned by the Fed to various US and foreign financial institutions; the banks then used this new money to pay the creditors who were pulling out $800+ billion in loans. And thus a global bank run was stopped in its tracks, in such a way that kept effectively insolvent institutions viable – with no explicit bail-out being necessary.
The general public never fully understood this, nor just how close the financial world had come to annihilation – and likely global depression.
And this lack of understanding is what made it possible to sell the myth of so-called "weak banks" and "strong banks".
There were no "strong banks". Indeed, the so-called "strong banks" survived only because the Federal Reserve created over $800 billion out of the nothingness and loaned this money to them to prevent their near immediate insolvency. Absent quantitative easing, it was game over for the financial system.
This convenient myth persisted, however, and helped enable the payment of near record bonuses to Wall Street investment bankers in the following year – because there was no overt rescue that the public understood.
They actually cannot even consider tapering despite what the media's fear tactics are promoting.. The PPPI and CPI are not where they want it and the inflation rate is approaching dangerously close to deflation status. Europe is already in Deflation. . Tapering now would even hasten the event of the deflation which scares the H out of the FED.
(Reuters) - The Federal Reserve could increase the risk that the U.S. economy suffers a damaging bout of deflation if it tapers its bond buying too aggressively, a senior central banker said on Wednesday.
St. Louis Fed President James Bullard also said that he had not yet made up his mind if next month's Fed policy meeting was too soon to opt to start scaling back purchases, from a current $85 billion monthly pace.
"It is possible if you pull back too quickly you put more downward pressure on inflation and end up with inflation running below 1 percent. And then I think at that point, deflation possibilities would start to arise," he told reporters.
Why would the FED even consider tapering when we are actually approaching a serious period of deflatiion.
It seems to me that this is the opposite of what the fed would want to do when the DREADED DEFLATION could lead to a banking crisis.
Obamacare is putting pressure on health insurance companies to temporarily foot the costs for medical claims until software is written to have bills paid to doctors and hospitals, incredibly the programing fo this part of the plan has not bn wriitten yet !
he administration’s definition of ‘enrollment’ is misleading
But there’s a significant catch. What the administration is defining as “enrollment” isn’t what the private sector defines as enrollment. In the real world, you aren’t enrolled in a health plan until the insurance carrier has received your payment for the first month’s premium. The Obama administration, on the other hand, is counting as “enrolled” a person who has “selected a Marketplace plan.”
Obamacare's Website Won't Be Working By November 30 -- But What If It Isn't Working By November 2014?
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Medicare Deputy CIO: Somewhere Between '30-40%' Of Obamacare's Exchange Software Has Not Yet Been
The Obamacare Exchange Scorecard: Around 100,000 Enrollees And Five Million Cancellations
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Enrollment In Obamacare's Federal Exchange, So Far, May Only Be In 'Single Digits'
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Why does this distinction matter? Just because you’ve selected a plan on the Obamacare website doesn’t mean that you’re enrolled. First of all, selecting a plan doesn’t mean you’re signed up for it; the exchanges have had substantial problems with the so-called 834 forms that insurers need to obtain your information. As many as a third of people who have chosen a plan may not have had their information correctly sent to insurers.
Second of all, even if your information has been sent over to the insurer, you aren’t enrolled until you’ve paid for the plan, and the insurer has received your payment. And a few weeks ago, one of Obamacare’s top IT officials, Henry Chao, testified before Congress that—incredibly—the administration has yet to build the system needed to pay the insurers.
White House leaning on insurers to pay claims retroactively
As the train goes up the hill, he says buy, but when the train has long gone down the hill he still says buy, until the caboose starts to go down, the he says sell
It;s a terrible problem for me too on my desktop. Msg board will suddenly ghost ans become unusable. Will have to back out
Race has nothing to due with it. The President does not run the country, the Federal Reserve does.