Bloomberg filed F.O.I.A. record requests and eventually, after the Supreme Court decided not to hear the case, got the records from the Federal Reserve, but two years after the damage was done. The Fed. argued that if the 'emergency loans' were revealed in 'real-time' that such information would cause a national security risk as people would make a run on their member banks if they knew how bad the crisis truly was. (more)
Lean more about the Feds Secret Lifelines - including loans to FOREIGN banks
http://bloom.bg/o6GTTL
If you don't understand fractional reserve banking: when a bank get's free money made out of thin-air from the Federal Reserve, it can loan out 90% of that new money at interest. Then as their customers use that money it returns to the banks where they again loan out 90% at interest. This creates a multiplier effect, making ever dollar in new created money into $10 (at interest).
At just 5% interest rates, it only takes two years for the banks to repay the initial 'emergency loan' (interest free), using income generated out of thin-air. Yet, the newly created currency, 9 times the original loans, remains in the economy, devaluating the existing currency (inflation). The great thing is that all the CEO's got bonuses based upon the new volume of transactions. In this way the entire economy absorbs the paper losses on home mortgages, while the banks that should have failed, survive. The hidden tax is the inflation, which hits those with savings hardest, those who own homes lose either equity or the value of their currency, eliminating any gains in the value of their property. Use this link to get the raw data spreadsheet of Federal Reseve Loans: http://bit.ly/Bloomberg-Fed-Data
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