The banks have operated a giantic scam on all of us. A newly released study from the Congressional Research Services says that the banks have borrowed the Fed at nearly 0% and then lent it back to us at around 3%. Bank of America borrowed from the Fed at .25% to .5%, and then lent it back to the Treasury at 3.5%! They did this for at least $15 billion. Do you know how much you would make if you ran the same scam? About $450 million…free! It pays to know someone at the Fed. And this is all done on your dime.
And again, J P Morgan borrowed from the Fed at .3% and lent it back to the Treasury at 2.1%. They did that with about $20 billion that they borrowed from you. And the list of banks and financial institutions doing this goes on and on. At one point the Fed was lending out money to these banks at .0078%. That’s free money. And they lent out about $3 trillion that way. If you take that $3 trillion and multiply it by 3%, that’s possibly as much as $90 billion of our money being scammed by these big banks.
Do you know what the banks were supposed to do with that money? They were supposed to lend it to you, the consumer, and small businesses. Did they? No. Over the same time in 2009, outstanding credit to U.S. households went down $234.5 billion. And for non-corporate businesses, outstanding credit went down $296.1 billion.
These banks did not give you the money, they didn’t lend it to you, they just took it. You should be really mad about that. If someone did it to you in your personal life, you know you would be mad, but they did it to you and virtually all of you didn’t even know about it, since our government allowed them–in fact, gave them the money–to do such.